Wow, I didn't realize it was this serious:
Who Suffers From the Foreclosure Mess? Just About Everyone - Megan McArdle - Business - The Atlantic: "Already, it's apparently impossible to sell a foreclosure--and people who have bought foreclosed homes are starting to sweat, wondering if they're going to get embroiled in a lawsuit. But what about short sales? Again, if a company doesn't have the authority to foreclose, it doesn't have the authority to authorize you to sell it for less than the value of the mortgage. Things seem cleaner with ordinary sales, but what if some other company comes out of the woodwork to claim that the note wasn't properly registered, and you paid the wrong guy? Does the lien go back on the house? Who owes the money?"