Bank of America, the nationâ€™s largest bank by assets, is placing a moratorium on all foreclosure proceedings and sales across the United States, according CNBC and a report on The Wall Street Journalâ€™s Web site. The postponement takes effect Saturday, October 9. JPMorgan and Ally’s GMAC Mortgage unit have delayed foreclosures in 23 states where courts have jurisdiction over home seizures.
1. What is a â€œhydra?â€ Why does Dr. Henning say that the foreclosure mess is going to â€œbecome a hydra?â€ What ethical breaches are part of this story?
2. What is a defective title? Who will be sued for this and why?Â What are the potential avenues of liability in this crisis?
3. The article mentions civil suits. Do you think there will be criminal court actions also? Is this fraud?
4. How do you think this story came to the mediaâ€™s attention?
Fisk, M. C., and K. M. Howley. (2010) Why the Foreclosure Mess Could Last for Years. Businessweek, October 8 (Retrievable online at http://msnbc.msn.com/id/39562824/ns/business-real_estate)