Analysis: Foreclosure “mess” unfolds state by state

From Reuters by Dan Levine.

An outcry over questionable foreclosures by GMAC Mortgage and other lenders is likely to hit some states more than others because of major differences in real estate law across the nation.

But ramifications for federal taxpayers and investors will depend on the costs of clearing up the problem, the latest fallout from the bursting of the U.S. real estate bubble. …

Judges across the country have been skeptical about homeowner challenges based on arguments that loans were improperly securitized, said O. Max Gardner III, a bankruptcy lawyer in North Carolina.

But evidence of false affidavits might hit closer to home for judges, Gardner said.

“When you’re talking about somebody submitting just a false document to the court, knowing it was false, that is something that any judge can understand,” Gardner said.