“Foreclosure-Gate” Impacting Home Sales

This New York Times piece, written by Andrew Martin and David Streitfeld, highlights the latest “foreclosure-gate” debacle — that is, the shoddy preparation of mortgage documents which has stalled foreclosures in 23 judicial foreclosure states — and the effect it has on home sales.  While the article focuses on sales declines, it altogether ignores the issue of price stability.  With fewer homes released into the market, supply is constrained, creating a bit of temporary price stability that otherwise may not have existed.  Either way, like most efforts under the current administration, this series of events will simply slow the decline to where the housing market will end up anyway.  Here’s a link to the article:

http://www.nytimes.com/2010/10/08/business/08frozen.html?partner=rss&emc=rss