house foreclosureGMAC Mortgage told its agents and brokers to stop foreclosures on homes in 23 states, including Florida, Illinois, Indiana and Ohio, according to a media report.

GMAC Mortgage told brokers to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to a memo obtained by Bloomberg. The lender will also suspend sales of properties on which it has already foreclosed, according to the report.

GMAC Mortgage is a division of Ally Financial (GJM), which was known as GMAC Inc. before the financial crisis hit. The company received than $17 billion in federal bailout funds before rebranding itself last year.

UPDATE: Ally has issued a press release denying that GMAC Mortgage is halting foreclosures. Here is the text of the press release:

Recent reports have stated that GMAC Mortgage instituted a moratorium on all residential foreclosures in 23 states. This is not true. In fact, all new residential foreclosures are continuing in the ordinary course of business with no interruption in our usual practice.

The speculation likely emanates from a direction previously given by GMAC Mortgage to certain of its outsource vendors to allow time to address a potential issue that was raised in a number of existing foreclosures challenging the internal procedure we used for executing one or more judicially required forms. This direction was to suspend evictions and REO closings where the related foreclosure could have been impacted by the same internal procedure. We are also reviewing certain previously completed foreclosures where the same procedure may have been used.

We are unable to comment on the specific merits of the challenge because some of them are in litigation. Nevertheless, a new process has already been developed and implemented so that though some existing foreclosures may experience delays while corrective action is taken, there will be no interruption in new foreclosures. These delays are expected to be resolved within the next few weeks and certainly before year end, without serious consequence. GMAC Mortgage has been addressing the procedural challenge for more than three months. In all other respects, the mortgage business is operating as usual.

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Ruthie

It is about how great your house looks, if it's nice and your 3 months into nonpayment they will put you on the streets!! Now if your house looks bad on the outside your very smart because they won't touch you...wow us so called middle class people that try so hard..can't get help just because we take care of our home so they think you have money, whatever, this is BS!!!!!!!!!

October 26 2010 at 8:10 AM Report abuse rate up rate down Reply
Claudia

My son had his mortgage with GMAC. He was working two jobs. His payment was appx 1100.00 a month.He got laid off from one job he then ask GMAC to modify his laon to a lower payment they(GMAC ) told him he would need to be at least 2 months behind before they would consider a loan modification so he got 2 payments behind then submitted a ton of paper work after a couple of weeks they turned him down saying he hadnt sent all the required paperwork. So he resubmitted it and waited a couple more weeks and this went on for several more weeks then they turned him down and set a auction date for the house about 30 days later.While his next door neighbor had the same amount loan and worked with my son making the same pay only his mortgage was with Bank of America they approved his and cut his payment down to just over 400.00 a month. I think this was really unfair considering the circumstances were so similar.My son had worked 5 years on two jobs trying to keep his house.I think GMAC should have to answer for alot of thier decisions.What happened to all the bailout money .And why were honest hard working people trying as hard as they could turned down by this company.

October 02 2010 at 4:51 PM Report abuse rate up rate down Reply
Appaloosa

Isn't that sweet! These people get more than $17 billion in bailout money and they still foreclose on people. I think everyone ought to demand their tax dollars back and say to hell with GMAC or Ally or whoever they are today. I think ALL bail outs were wrong and they should have allowed all the banks and insurance companies and blood suckers like GMAC to fail. They were failing due to greed and mis-management and illegal practices. I bet their President, CEO, CFO, COO and on and on got their bonuses worth millions this year. It is sickening to see the rich get millions and from the government and the poor get their handouts and the lower middle class has to fight to keep their homes. And before you say this is an Obama issue, it started with Bush. All these elected eat from the same corporate plates. They are all crooked! They are the ones that will force America's hands to pick up their guns. The Second Ammendment was written specifically for these times. If you do not believe it, READ THE CONSTITUTION! The government has far exceeded it's bounds.

September 21 2010 at 8:46 AM Report abuse -1 rate up rate down Reply
1 reply to Appaloosa's comment
oredrag

BigBiz is back on their feet again. They do not give a dam about us! It is NOT Obama's fault, as it IS the fault of BigBiz! BigBiz corrupted the government, NOT the other way around! Grow a brain! Your GOP governors and senators are the ones misdirecting the help Obama has provided! BigBiz is protected by the GOP, while Obama has been trying to find ways to protect us from this corruption! Obama is still trying to put the pieces back together, while fighting the GOP that says no to most everything he tries to do! Then some of them try to take credit for what Obama has done!

September 21 2010 at 3:27 PM Report abuse -1 rate up rate down Reply
FREAKINCISI

Point Is > Be Aware, something is up. And to you people that Comment with 50 paragraphs, you have no Point. Make you point and move on. We dont want to read about your Nightmares.

September 21 2010 at 8:34 AM Report abuse +1 rate up rate down Reply
cshae89546

Talk about a scam! You have to remember that the wealthy progressive elite who are running Washington, D.C. and this nation are the same redistribute YOUR wealth people who created the housing bubble financial crisis in the first place by "forcing", in the name of equality, affirmative action loans for unqualified buyers and then opposing regulations intended to control the adverse effects to those financial institutions while subsequently acting to bail those very same failing institutions out and thus gain government control of them.......with your tax dollars.

September 21 2010 at 7:56 AM Report abuse +4 rate up rate down Reply
Dan and Marie

GMAC/ALLY is not helping anyone. My brother who is self employed requested a modification. He only owes $80,000 on his home. He is a slow pay, running a month behind. GMAC denied his modification, told him if he can't afford the house, give it back to them( thought they didn't want the houses), told him he shouldn't have bought in the first place. He has owned his home for 21 years but refinaced a few years ago to combine an equity loan. He receives calls up to 10 times per day from them, sometimes calling him names,i.e deadbeat, loser etc. Banks want your home, they will sit on the foreclosed homes and then try to sell in a few years for a profit.

September 21 2010 at 7:49 AM Report abuse +1 rate up rate down Reply
1 reply to Dan and Marie's comment
scbeach07

Hey only reason they want his home is because he only owes $80,000. This is a home they can make money on. If he was upside down in the load they would not be so fast to get it. Remember if he has to go to foreclosure ask them to produce the original note. Not a copy. Search show me the note defense.

September 21 2010 at 8:13 AM Report abuse +1 rate up rate down Reply
jdrumerrnr

Wow, you're everywhere. Under different names of course.

September 21 2010 at 7:46 AM Report abuse rate up rate down Reply
Patty

Didn't you hear the recession is over....ditto for wreckovery summer.

September 21 2010 at 6:20 AM Report abuse +3 rate up rate down Reply
mesager42

We have one neighbor who borrowed against the equity they had in their home when the market was good to the amount of $400,000. They took that money and paid outright in full for another smaller house. Then when they defaulted on the house they borrowed against, it went into foreclosure. They beat the system, because they still have a house and no mortgage. The bank got the other house and sold it for less than was originally borrowed against it by the homeowner. Our neighbors' sons played a lot of poker. It was the gambling mentality that got them one over on the bank.

September 21 2010 at 4:10 AM Report abuse -1 rate up rate down Reply
mesager42

Some folks who can afford the house payments on a mortgage are deliberately refusing to make payments to force their house to go into foreclosure, because they owe more on the house than it is currently worth. Then they declare bankruptcy which delays the foreclosure, and allows them to keep living in the house and keep their vehicles, while reaching a settlement with all involved financial parties.

September 21 2010 at 4:05 AM Report abuse +2 rate up rate down Reply