California atty. general asks GMAC to "CEASE FORECLOSURES"

Discussion in 'Wall St. News' started by S2007S, Sep 24, 2010.

  1. S2007S


    Yet another great story on a Friday evening, asking that GMAC CEASE FORECLOSURES!!!
    This is where you have to question the system and take notice how fucked up things really are, if they could just let housing do its thing and find a bottom on its own than maybe we can see what these houses are really worth. Keeping millions of people in their houses and providing assistance, free bailouts and tax credits is not the answer. Where are the free fucking markets people. WHERE are they???

    Calif atty general asks GMAC to cease foreclosures
    Calif attorney general wants proof GMAC is complying with law, asks lender to stop foreclosure

    Alex Veiga, AP Real Estate Writer, On Friday September 24, 2010, 6:24 pm

    LOS ANGELES (AP) -- California's attorney general wants GMAC Mortgage LLC to stop foreclosures in the state until it proves it is complying with a state law aimed at preventing foreclosures.

    California Attorney General Jerry Brown said Friday that he directed Ally Financial Inc., which owns GMAC, to prove it is complying with a law that prohibits lenders from taking steps to foreclose a home before making an effort to work with the borrower.

    The state law covers mortgages made between Jan. 1, 2003, and Dec. 31, 2007. It requires lenders to attempt to contact a borrower to determine if they're eligible for a loan modification before issuing a notice of default on the mortgage, the first step in the foreclosure process.

    This week, GMAC said it halted certain evictions and sales of foreclosed homes to correct a "potential issue" in its foreclosure process.

    GMAC did not specify the internal issue that prompted the moratorium, but it has been linked to lawsuits this year surrounding the alleged falsification of a key foreclosure document.

    In a deposition taken in December, GMAC employee Jeffrey Stephan said he signed 10,000 affidavits or similar documents a month without personally verifying who the mortgage holder was. That means many foreclosures could have taken place based on false documentation.

    Brown alluded to Stephan's deposition, saying California homeowners facing foreclosure are "clearly in jeopardy since an Ally Financial official admitted his review of thousands of critical foreclosure documents was really a sham."

    The company has not addressed how many homeowners would be affected by its suspension of evictions and foreclosure sales. It expects the issues to be resolved within a few weeks or, at latest, by year-end.

    Still, the lender has halted evictions and foreclosure sales in 23 states, but continues to foreclose on homes in California, Brown said.

    California has the nation's fourth-highest foreclosure rate, with one in every 194 households receiving a foreclosure-related warning last month, according to foreclosure listings service RealtyTrac Inc.

    A call to Ally Financial was not immediately returned Friday.
  2. S2007S


    Anyone know why this country rewards failure?
  3. GMAC is a bunch of scum balls anyway. I've done several short sales and REO with them. I wouldn't be shocked if they were not in compliance with state law.
  4. GMAC is majority owned by the government. Is anybody else wondering why a government that is seemingly moving heaven and earth to keep people in their homes with one hand, is, with the other hand, the owner of an entity that has been aggressively (and probably illegally) kicking people out of their homes.
  5. No clue, but you would appear to be a direct benefactor if you're right.