Housing economists and analysts go back to the question of whether it’s still worth saving the current market or if it’s better to let the market free fall and think about the housing market’s future. Though it is admirable how some homeowners are currently fighting off dubious foreclosures, this move has perverse effects on the housing market in general. Most analysts will say that the housing market has to hit rock bottom for the economy to ever have hopes of recovering again; with the recent legal mess over foreclosure filings, finding bottom gets impossible.

Former General Motors’ subsidiary, GMAC, has recently been drawing attention. Lawyers have charged GMAC of hastily filing foreclosures on homes. The mortgage lender may indeed be guilty of this.

According to one GMAC signing officer in depositions, who have signed thousands of foreclosure documents in a month, he personally signed some documents without even knowing the key details regarding the mortgage represented in the documents. Furthermore, he says, some of the documents are not properly notarized. If this proves to be correct, then a lot of homeowners will be rejoiced – an onslaught of foreclosures can be invalidated by these missteps.

The housing market has really been flooded by numerous defaults; the poor execution in foreclosure documents only proves this. The poor execution only shows that staffs at mortgage servicers are really having trouble keeping up with the number of defaults. But this does not save them from blame: pushing through with foreclosures despite the sloppy execution is giving lawyers a reason to contest the proceedings.

Though homeowners who have had their homes taken from them will be happy about the recent legal debate, the market is being kept from hitting bottom as both sides are yet to determine what to do with the repossessed homes. This legal mess-up will also prevent homes from re-entering the market. This then, creates a high supply and gives off an illusionary high price range when prices really should be dropping.

The legal actions against the poor execution are not all that bad, though. At least, a few deserving homeowners will get their houses back.