GMAC Mortgage

Feds Launch Foreclosure Probe, and Chicago Halts Evictions

Federal agencies are investigating foreclosure processes after some major banks have said they would either review or suspend foreclosures because of possible errors. And Chicago-area law enforcers are halting foreclosure-related evictions until banks provide them with proper affidavits.

Ohio Attorney General Files Lawsuit Against GMAC Mortgage

The state of Ohio filed a lawsuit against GMAC Mortgage, alleging that the lender used fraudulent affidavits and documents to mislead courts in proceedings related to home foreclosures. Attorney General Richard Cordray said GMAC Mortgage%u2019s parent Ally Financial had taken actions that raise questions about the legitimacy of foreclosures in 22 states including Ohio, USA Today reported.

Bank of America Joins the Foreclosure Delay Brigade

Bank of America Corp. will delay foreclosures on properties in 23 states to review whether its employees signed off on foreclosure documents without reading them, making the largest U.S. bank at least the third in recent weeks to suspend foreclosures.