How does the foreclosure freeze work?

On the day when JP Morgan reported that in the state of New York it takes almost 800 days from a mortgage being delinquent to the bank being able to sell the property (That's over 2 years), the guys at Fox Business Channel (including Charlie Gasparino) explain how the pending foreclosure freeze caused by improper legal documents can wreak havoc on the foreclosure process.

Barney Frank and other legislatures are scaring some of the bankers with what might happen to the loans on their books.

For homeowners who have fallen behind on their monthly payments one of the best things you can do is to seek out legal council and try and have your bank "show the note" to prove to you and your council that they are actually the rightful recipients of your monthly payments.

The question is if new government involvement will help or hurt the speedy resolution of these issues.