This bombshell just hit the wires….EFFECTIVE IMMEDIATELY GMAC HAS SUSPENDED ACTIONS ON FORECLOSURES IN 23 STATES!
No specific information yet, and it does not clear exactly the scope of what is being suspended, but one can only assume this has something to with the recent disclosures that affidavits of Jeffrey Stephan have been withdrawn!
A whole lot of credit for this should go out to Ice Legal for all their work to bring the efforts of Jeffrey Stephan to light! Congratulations to Ice for this development!
Ally Financial Inc.’s GMAC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.
GMAC Mortgage may ” need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.
The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.
GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.
GMAC was created in 1919 to provide financing for buyers of General Motors Co.’s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis. It rebranded itself Ally Financial last year, and continues to offer auto loans and mortgages.
JUST A SMALL TASTE OF WHAT’S TO COME IN WHAT WILL BE AN EXTRAORDINARILY CHAOTIC ENVIRONMENT…WHICH WILL ONLY BE EXACERBATED WITH THE ROCKET DOCKETS.
IF THE LENDERS ARE NO SUSPENDING, WHY ARE OUR COURTS NOT DOING SO?
This is SO AWESOME! Wow! A moratorium! I hope this sets a precedent so this can be done against other banks! This is what needs to be done nationwide in all Foreclosure actions of any kind…to give time for a very thorough investigation (it would take perhaps years to uncover all the mess) of all the banks, loan servicers, trustees, foreclosure mills, law firms, etc, etc, etc!
I think this is a Great step! I am so happy for the people who’s Foreclosures are Halted!
Please keep us all informed! I for one, want to keep apprised of this latest development!
MATT this is awesome news. I blogged on it too but there cannot be too much coverage. I cannot believe that AZ republic did not have on front page of online. I couldnt’ even find it yet. AMAZING. Today I watched as people thinking they were working with the banks… sat in court telling the judge they were working with me and I got a note on the door. 3-5 days later they are in court not knowing what to say or do and told they have to tell judge WHAT reason is to defend against the banks possession.. THEY have NO CLUE because the judge says that just working on modification is not enough .. .IT IS SOOOOOO SAD
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Very very interesting… as it appears that GMAC was restructured in 2008… and of course became a billion dollar Taxpayer bailout recipient… when they were originally a “vehicle finance company”… looks the same for Cendant once defunct and now foreclosing without a “restructuring” that has tendrils to PHH and former “fleet management” financing.
Because they picked judges who think that if you don’t pay then the bank has a right to your home and laws don’t matter. How do I know? I know some who have been appointed.
Matt, your last comment/question is very potent.
I informed my court that the affidavit of merit in my case was perjured, and also that the assignment of mortgage had been fabricated and did not reflect or memorialize any transaction that actually took place. I did this 28 months ago, or 2 years and 4 months.
Perhaps the courts will become more aware of the hinkie documents and averments with this recent development.
It sounds like a bombshell but I’ve heard that before and would recommend against holding your breath. Still, I’ve already heard from some clients freaking out at the slightest chance of this being some kind of turn around point. BTW I liked that last line, I quoted it on my office’s blog
amerihopealliance.com/blog