GMAC Halts Foreclosures in 23 States

Discussion in 'Economics' started by MattF, Sep 20, 2010.

  1. MattF


    Can't help but wonder if the incompetence and fraud perpetrated is starting to catch up a bit...

    Ally's GMAC Mortgage Halts Home Foreclosures in 23 States

    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.

    Following is a table of the affected states.

    New Jersey
    New Mexico
    New York
    North Carolina
    North Dakota
    South Carolina
    South Dakota
    To contact the reporter on this story: Denise Pellegrini in New York at
  2. S2007S


    HALT fucking foreclosures, I am so tired of hearing this, why the fuck are they going to halt foreclosures, this is not how the free market works. As I said a thousand times before, housing prices are still overvalued by at least 25%, with this fucking nonsense going how can the price of houses ever drop to their real true market value. It was quite alright a few years ago to let housing jump 10-30% a year but as soon as the prices started falling they came in and said we cannot let housing prices fall, time to create programs and give out free money to start propping up the entire housing market and that's what they did that's why housing prices are still at inflated levels.
  3. They are halting because too much supply entering the market depressing prices, so GMAC is figuring better to hold VS realize a loss, add more to the to the glut of housing supply which in turn will further erode the value of your inventory.
  4. I'm leaning towards the theory that state & local gov't are going to require higher standards of maintenace on foreclosed property. They are not going to tolerate rundown vacant property.


    What baffles me is why the banks aren't going after what they're owed. Here in SC they can go after the deficiency judgments but rarely do.

    We had a neighbor get foreclosed, from public records they apparently had $900K in mortgages on the house. After not paying the mortgage for a year they finally were foreclosed upon. The bank in question with the primary mortgage put it on the market at $599K. And the end of the court proceedings the bank waived the deficiency judgment. So I suspect when all is said and done they'll walk away from $300 - $350K with the bank(s) absorbing the losses. I ask "why" as these people have other assets.
  6. Most of the Bozos own nothing, You really think some Trailer Park trash earning 18K a year who was given a loan for a 900K home so they can borrow and live high off the hog has anything of value left.

    Most of the money got spent on walmart junk. There is nothing to recover.


    Please don't post if you can't read and comprehend my prior post.

    I know for fact that they have assets. And they didn't earn $18K; both are professionals and the guy has a pension from his earlier job.

    And for the record there are a LOT of these type of cases that I am aware of.
  8. Had the Govt not intervened in 2008 with various bailouts the mortgage banks, holders and insurance providers would have gone bankrupt allowing the borrowers to effectively negotiate and settle.

    Unfortunately our financial economy requires an appreciating real estate market to function.

  9. S2007S


    Exactly, sad that housing prices need to be appreciating in order for the economy to actually work, seems without people being able to borrow against their houses the economy is pretty much worthless.
  10. What no one seems to understand is it is better for the economy if someone earning 50K can buy an 80K home and only service a small mortgage payment and not need to borrow money to buy things.

    Someone thought it was a smarter idea for someone earning 50K having to borrow half a million dollars to buy a home and then pledge the home as collateral so they can borrow and buy things.
    #10     Sep 20, 2010