GMAC Will Review Foreclosures in All 50 States

GMAC Mortgage will review its foreclosure procedures in all 50 states, broadening an initial review that began about two months ago. The move follows Bank of America's (BAC) decision to do the same.

GMAC, which is a unit of Ally Bank, has hired a number of accounting and legal firms to go over its foreclosure procedures. The company earlier started reviewing foreclosure-related affidavits in 23 states, and in some cases halted the foreclosure process, though GMAC says it hasn't yet found evidence of "inappropriate" foreclosures.

"Foreclosure is a very serious matter and only implemented when all other home preservation options have been fully exhausted," the company said in a statement today. "We are taking these additional steps to restore confidence in the process, which is critical for the stability of the home and mortgage industry."

GMAC is at least the third financial institution in recent weeks to either review or suspend foreclosures because of the possibility that the sheer volume of documents prevented bank officials from actually reading, verifying or notarizing the documents they were signing.

Earlier this month, BofA said it would delay foreclosures on properties in 23 U.S. states to review whether its employees signed off on foreclosure documents without reading them. JPMorgan Chase (JPM) has also said it was delaying some foreclosures by a few weeks in order to better examine related documents.

Attorneys general in dozens of states plan to launch a joint probe into charges that banks used bogus paperwork to evict borrowers from their homes, the New York Post reported.


Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum

3 Comments

Filter by:
DawnellDaugherty

Bank of america and chase are admitting fault by doing this;even with all of the toxic loans the government,there was an over abundance left. some home owners got these based on prior credit,they knew it could come to this.

October 13 2010 at 6:35 PM Report abuse rate up rate down Reply
ohringen

The reason they stopped foreclosures for now is because the banks foreclosing did not even own these properties. They bought bundles of sub-prime mortgages and never had title to any of these properties. Most of these people could stay in their homes and pay but for some reason these companies want 10%-11% interest on a 30 year interest only bearing loan. They are not willing to work with current owners. If banks were to give these people a 5% fixed loan for 15 or 30 years there would be no foreclosures. These people are not deadbeats! These people were sucked into 30 year interest only loans. Bank presidents of these loans need to go to jail!

October 12 2010 at 9:07 PM Report abuse rate up rate down Reply
1 reply to ohringen's comment
Jeannette

Pay your MORTGAGE! and stop blamming the banks!! Give me Give ME!! should we call fraud where it should be?? the one that took the loan?

October 13 2010 at 9:24 AM Report abuse -1 rate up rate down Reply