Please note - there are many suits springing up against the foreclosing banks. A majority of them do not involve claims of invalid title documents. They revolve around the fact that there are so many foreclosures being filed, that the staff preparing the filings have been sloppy, through the sheer numbers of the files.

That's not to paper over the problems that are just now going to hit the mortgage lending business in the US, but it is not yet at the state that Sinclair would like it to be.

I've always thought that the emphasis on foreclosures down south creates a potential maelstrom. Do mortgages in the states allow the exercise of a power of sale under a mortgage, or is that not possible? Up here, if you default on your mortgage, the bank generally sells the property, and then goes after you for any shortfall. If there's anything left over after the sale, that gets paid to the borrower. That way, homeowners here have a real incentive to try to keep their house afloat - if they walk, the bank can chase them.

Banks can foreclose up here, but it is a court procedure that is generally only used in the midst of a full blown depression, when land has very little value. Partly because the borrower up here has almost a guaranteed right to have the court order a sale instead, if there's any value in the property.