Brokers Expect REOs to Trigger More Legal Disputes (via REALTORMag): http://bit.ly/nqrgOK

Bank of America Corp., faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer (via Bloomberg.com): http://bloom.bg/neH70d

A northwestern Pennsylvania woman tried to smother her sleeping adult son before she set her house on fire with foreclosure documents and sliced her wrist with a razor, police said (via sacbee.com): http://bit.ly/q5uPYO

Ocwen Financial Corp., a servicer of residential mortgages, launched a new loan modification program to reduce the principal on a mortgage for delinquent borrowers, but the borrowers must agree to let loan investors share in future appreciation of the home’s value when the market recovers (via REALTORMag): http://bit.ly/neTEx3

The Illinois Attorney General's office filed suit Wednesday against two Chicago firms that it alleges committed mortgage rescue fraud by charging 40 homeowners upfront fees for services that were not adequately, or ever, provided (via chicagotribune.com): http://trib.in/oGCrij

The after-effects following a foreclosure to a borrower may not be as bad as once thought, according to a new paper by Fed economists. With the wave of foreclosures plaguing the nation, Fed economists sought to find out what happens to households following a foreclosure (via REALTORMag): http://bit.ly/o9FTcO

Zeal to halt mortgage fraud hampers housing recovery (via ajc.com): http://bit.ly/r0wqUj