However one chooses to characterize what happened in the securitization process is immaterial. The fact is the collateral that backs the security is no longer worth what it once was. It is only worth what someone will pay for it.
When an owner of a stock decides it's a dud, no big deal, sell it. In the case of an investment being a house it's different. It's where one lives. They are attached to it.
Summary judgment is often granted to an entity based on a dubious claim of standing only to see it sold for much less than what the original owner could pay.
Subtract all the costs of litigation to prove this dubious standing and you create more negative value.
On top of that another empty house sits vacant with a clouded and potentially fatal title flaw - further eroding it's value - as well as the values of adjacent properties.
Something is going on in the murky middle that likes this equation and wishes to stay in the dark.
I wonder why so many hundreds of thousands of condominiums and townhouses were built during the Bubble, as it seems that they are insuring the continuation of lackluster house sales.