I was led to an online report about how the sub Prime market woes are just the tip of the iceberg.  Even though bankers are claiming the worst is over, interesting things are afoot in the U.S. Court systems.  In the Cleveland, OH Federal District Court, Deutsche Bank was denied kicking out 14 families from their homes because DB was unable to produce the mortgages on those particular properties.

The document produced showed an "intent to convey the rights in the mortgages." Since this had never been actually challenged and ruled on in court, this led the judge to dismiss the suit brought by DB to take over the houses.  All because of the current system of "globalization of mortgage backed securities".

Although this could scare lenders across the company from buying and selling such notes, putting a further crimp into America's already weak credit situation, it's more likely that lenders will get their ducks in row and be able to produce the documents needed before running willy nilly to court.

The one thing folk should realize is to not test the system, attempt to go into default to see if one can get a free and clear house. (Rather similar to FHA's Secure Loan program where a family getting advice to stop making payments so they can get into the Secure Loan program will be denied!)

btw - here is the link to the online report.  http://www.rense.com/general79/subprime.htm