All 50 states are investigating "foreclosures"- So what does this mean?

Thursday, the last remaining states Attorney's General jumped on board the bandwagon and announced that Alabama would indeed join into the Bi partisan probe to see if mortgage companies have been following procedure on their foreclosures. It is alleged that bank employees have not been reviewing the documents and have been doing what has now been coined as "robo-signing". It is estimated that the average foreclosure package is in the hands of these employees for an average of 1.5 minutes. Definitely not enough time for a thorough review. But so what?
Now don't get me wrong, I'm just playing Devil's advocate here. If you didn't pay your mortgage for 8 months, isn't it a reasonable expectation that the bank should get the property back? Even in this age of entitlement, I think most of us would agree, if you wanna play, you gotta pay.
In watching the reaction from different people, entities, etc, it is very clear to me that there are different opinions about all of this. And I can see that the implications are going to reach far and wide.
First, the opinions. Banks are saying so what if they rubber stamped documents to speed things up. If the homeowner didn't pay, they were within their right to foreclose. But here's where it gets interesting, if somewhere in that package, the bank didn't follow the procedure, say for example they missed a posting in the local paper, then technically they can't foreclose until they fix the mistake. That's just one example.This is where consumers and advocacy groups are chiming in. They want the banks to stop deflecting and fix this mess.
Second, the implications. While some of the larger banks have halted foreclosures for now, others have not. Those that have maintain that they haven't done anything wrong, but they want to check and be sure. It appears that title companies are threatening to not insure properties sold by the banks after foreclosure, because now their may be questions of "does the bank really own the home"? Wall Street is seeing bank stock prices head down at a time when the market overall is finally starting to rise again. And then there's just the basic law of supply and demand. Right now, a potential home buyer has increased buying power due to the historically low interest rates. Rates that are hovering right around the 4% range. But in my mind, if the supply of bank owned properties starts to "dry up", then isn't it logical that the homes that "regular" sellers have up for sale should go up in price due to more demand and less supply?
There's a lot of variables that figure in to all of this, so I think that this is one where truly only time will tell the whole story.