GMAC halts foreclosures on possible document mishandling

September 21, 2010 by · Leave a Comment
Filed under: Real Estate News 

This could be interesting.  Ally & GMAC basically were sending documents to the court that were stated as verified when they actually were not.   In defense of GMAC, they most likely got the basic correct regardless like balance and time the borrower has been in default so they could be a non-issue once they straighten out their process and get corrective action in place.

The real question is when they have provide proof of the actual mortgage note that proved a legitimate claim on the home in the case of a default.  Because of the securitization of these mortgages and the breakneck pace that these loans were originated, this is a very valid question and some borrowers have challenged this and won their case because the person foreclosing didn’t actually have the note.

Bloomberg – “The entire situation is unfortunate and regrettable and GMAC Mortgage is diligently working to resolve the situation,” Proia said. “There was never any intent on the part of GMAC Mortgage to bypass court rules or procedures. Nor do these failures reflect any disrespect for our courts or the judicial processes.”

State officials are investigating allegations of fraudulent foreclosures at the nation’s largest home lenders and loan servicers. Lawyers defending mortgage borrowers have accused GMAC and other lenders of foreclosing on homeowners without verifying that they own the loans. In foreclosure cases, companies commonly file affidavits to start court proceedings.

“All the banks are the same, GMAC is the only one who’s gotten caught,” said Patricia Parker, an attorney at Jacksonville, Florida-based law firm, Parker & DuFresne. “This could be huge.”

No Misstatements

Aside from signing the affidavits without knowledge or a notary, “the sum and substance of the affidavits and all content were factually accurate,” Proia wrote in the e-mail. “Our internal review has revealed no evidence of any factual misstatements or inaccuracies concerning the details typically contained in these affidavits such as the loan balance, its delinquency, and the accuracy of the note and mortgage on the underlying transaction.”

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