Foreclosure-gate Expanding?

The housing problem, figuratively described as a "hole", is much deeper than people realize. Foreclosure-gate could expand the proper paperwork becomes precedence for other States.

Compounding the problem, a long-term housing cycle bottom, not necessarily characterized by collapsing prices, is not due for another twenty years.

Foreclosure-gate is back.

The Massachusetts Supreme Court has ruled against U.S. Bancorp and Wells Fargo in a case that could have serious implications for the already depressed U.S. housing market.

The high court found that the banks wrongfully sold two foreclosed homes by failing to show the proper paperwork at the time of the sale indicating they actually owned those homes and had the right to a) foreclose on those properties and b) sell the homes to new owners.

If this decision is echoed in other states, the foreclosure mess is going to get a whole lot messier.

Source: finance.yahoo.com