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GMAC Ends Foreclosure Freeze

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Hat tip reader Darby Shaw, via Detroit News:

GMAC Mortgage resumed foreclosures in 23 states Tuesday after it had halted practices earlier this month following an employee’s admission of approving thousands of foreclosure notices without reading the paperwork.

“As we review the affected files in the 23 judicial states and take any needed remediation, the foreclosure process continues,” said Gina Proia, a spokeswoman for GMAC Mortgage. The original freeze did not include Michigan.

Last week, the U.S. Treasury Department’s special inspector general confirmed it is looking into the practices of GMAC Mortgage, part of Detroit-based Ally Financial Inc., which is 56.3 percent owned by the federal government. The government has loaned $17.2 billion to Ally Financial.

GMAC said last week it has hired legal and accounting firms to review foreclosures in all 50 states. Bank of America Corp. also said Tuesday it has resumed foreclosures in all 50 states.

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10 comments

  2. Swedish Lex

    Observing these developments from a distance. Some banks resume foreclosures immediately in connection with lawsuits against the banks being prepared.Are the banks’ behaviour is motivated by them taking steps to begin their legal defences?

    Rather than the banks having to prove that their foreclosures/titles are not rotten, they are throwing the ball over the the other camp, i.e. families with no deep pockets to resist the banks case by case. This will allow the banks to pretend that they are just fine and, hence, resist claims by PIMCO, etc.

    2. freepressmyass

      This is such a laugh if it wasn’t so sickening.

      I’d bet none of the banks have done a damn thing about anything. I’d also bet they didn’t even slow down foreclosures. They took a few cases and fed them to the media to make like they’re cleaning up their act.
      It’s all bullshit.

      As far as the DOJ or an investigation of any kind from this administration, the chances of me winning the lottery are better than Obama investigating the banks.

      He might as well just come out and say he’s investigating himself and his administration.

      Please. It’s Obama and Bernanke who keep funding them to carry on with the task at hand.

      One big criminal enterprise.

    3. Justicia

      Money quote from today’s NYT story:

      “The banks have dragged their feet and taken forever to do loan modifications, yet within less than two weeks they have managed to review hundreds of thousands of foreclosure cases,” said Adam J. Levitin, an associate professor of law at the Georgetown University Law Center. “It is simply not credible.”

      NY times
      http://www.nytimes.com/2010/10/20/business/20mortgage.html?_r=1&hpw

      October 19, 2010
      Intermission, at Best, in Battle Over Foreclosures
      By DAVID STREITFELD
      Bank of America may be trying to bring down the curtain on the foreclosure furor, but there were numerous indications Tuesday that the problems would not move off-stage so quickly.

      A day after the bank said it would once again pursue defaulting borrowers in the 23 states where foreclosures were overseen by the courts, judges in Florida said they were expecting even more challenges from defaulting homeowners.
      […]

  3. Antifa

    RICO. Has anybody seen my main man, RICO?

    He knows how to deal with racketeering and premeditated fraud.

    Where’s RICO? He’s got all the tools needed to open up this can of worms and slice and dice some securities fraud.

    He’s RICO. Yo — what makes you bankers think he won’t cut you?

    Hey now, anybody seen RICO anywhere?

  7. Dennis

    I believe the banks will forclose and hope people have no money to fight. The ones that have money for attorneys the bank will run as fast as they can. Watch the action. Their paerwork is just plain trash and they know it. Short the banks in the stockmarket. Our goverment is just wating untill the Nov 4 2010 watch and see if that is not what is going on.

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