FDIC's Bair Fears Foreclosure Litigation Fallout
Lawsuits from borrowers booted from their homes by foreclosure could keep people from buying foreclosed homes, Sheila Bair, chair of the Federal Deposit Insurance Corp., said Monday at a housing finance conference.

Bair called for foreclosure to be a “last resort” after all legal and procedural requirements had been exhausted.

Bair says she fears that foreclosure litigation would "ultimately be very damaging to our housing markets if it ends up unduly prolonging those foreclosures that are necessary and justified."

Source: Associated Press, Marcy Gordon 910/25/2010)