Sorry, this seems like much ado about very little. It appears that the banks have been trying to save some expense by “mass-producing” foreclosures. These errors are very minor and can be easily corrected. The foreclosure process will slow down, expenses will go up for foreclosing lenders (maybe in a few cases the expense may even make foreclosing uneconomical), and some lenders may have to pay damages for not following required foreclosure procedures; but there will be no massive land-title problems.
these are not minor problems in foreclosure.
It is like the black knight saying “tis but a scratch” (no appologies to monty python)
1. Minor paperwork issues that slow down the foreclosures by a few months at most.
2. Major Paperwork problems that leave the bank, city/county, and Homeowners fighting over the title for years, and will impact the value of the property for 7-10 years at a minimum. I am talking about those properties where you have two or more banks trying to foreclose on the same house, multiple tax liens, and abandonment.
The real property title insurance business is driven by a combination of abstract legal doctrines and prudential considerations. For title insurers, even a remote legal vulnerability can be a severe insurance risk if a large class of policies are subject to it. A single court decision that reopened foreclosures across the state could put the insurers on the hook to provide a lawyer to pay damages or clear and defend property title for many thousands of title insurance holders.