The Foreclosure Fiasco!

This week has seen a new news issue on the top of the headlines: the "foreclosure fiasco".

Reportedly, some lending company managers and executives have been just basically robo-signing or rubber-stamping foreclosure documents. The concern, in case it's not readily apparent, is that such automated approvals could result in some folks being mistakenly or undeservedly kicked out of their homes.

So, there is a moratorium being imposed until the nature and depth of this issue is understood.

According to John Malloy, Executive Producer of the show "Fast Money" on CNBC, here are some recent data and observations:

"One in every 139 mortgages are currently in some state of foreclosure, an increase of 4% from last quarter. However, recently discovered issues within the foreclosure process at a number of large banks have politicians crying out for at least a brief moratorium on further foreclosures. Several of the bigger banks have already voluntarily slowed or stopped the process until procedures can be examined and improved."

And, "Without the moratoria, the percentage of foreclosures as a percentage of total loans outstanding is already at the extended rate of 4.6% - 288,000 homes were seized in third quarter alone."