Bank Fraud at the Heart of the Foreclosure Crises

let's take a look:

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In foreclosure controversy, problems run deeper than flawed paperwork

By Brady Dennis and Ariana Eunjung Cha
Washington Post Staff Writers

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For struggling homeowners trying to avoid foreclosure, it could mean an opportunity to challenge the banks they argue have been unhelpful at best and deceptive at worst. But it also threatens to leave them in prolonged limbo, stuck in homes they still can't afford and waiting for the foreclosure process to begin anew.

For big banks, "there's a possible nightmare scenario here that no foreclosure is valid," said Nancy Bush, a banking analyst from NAB Research. If millions of foreclosures past and present were invalidated because of the way the hurried securitization process muddied the chain of ownership, banks could face lawsuits from homeowners and from investors who bought stakes in the mortgage securities - an expensive and potentially crippling proposition.

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http://www.washingtonpost.com/wp-dyn/content/article/2010/10/06/AR2010100607227_pf.html