Sunday, October 10, 2010
US suspends foreclosures as realty titles turn toxic
The US subprime mortgage crisis resulted from a great many loans being granted to people who could not ultimately pay them back. But it also apparently created a rush to handle documentation that is leaving banks without the title of the property against these loans.If banks cannot repossess property, because their rights to title are not solid, then they will have to write off the full value of this loan. The potential losses are incalcuable, and more than enough to create a second US banking crisis.