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Tip of Titanic iceberg: GMAC Mortgage halts foreclosures to fix flawed process

Tip of Titanic iceberg: GMAC Mortgage halts foreclosures to fix flawed process
September 21, 2010 — St. Petersburg Times

Wake up and good morning. We are reminded again of one of the biggest messes -- and that's a competitive world -- in Florida these days: Banks and their law firms pushing to foreclose on homes without proper paperwork and without following court-mandated procedures. In this case, the screw-up belongs to Ally Financial Inc., whose GMAC Mortgage unit halted evictions in Florida and 22 other states amid allegations of mishandled affidavits. So says a Bloomberg News story.

Foreclosure errors could snag other lenders
September 22, 2010 — The Washington Post

Some of the nation's largest mortgage companies used a single document processor who said he signed off on foreclosures without having read the paperwork - an admission that may open the door for homeowners across the country to challenge foreclosure proceedings.

Housing Starts in August Exceeded Analysts’ Forecasts
September 21, 2010 — Reuters

WASHINGTON — Housing starts in the United States increased more than expected in August, to their highest level in four months, and permits for residential construction also rose, government data showed on Tuesday, suggesting that the embattled market was starting to stabilize after the end of a tax credit.

New Push on Home-Loan Disclosure
September 22, 2010 — The Wall Street Journal

Elizabeth Warren and Treasury Secretary Timothy Geithner on Tuesday brought together consumer groups, mortgage-industry officials and other housing representatives for talks on the Obama administration's plan to simplify mortgage-disclosure documents.

Bank of America permanent HAMP mods drop 18.6% in August
September 21, 2010 — HousingWire

Bank of America converted 3,559 trial mods into permanent status through the Home Affordable Modification Program in August, down 18.6% from the 4,300 done July and less than half the amount done in June.

Posted: Wed, September 22 2010 9:12 AM by joelc

Comments

James Barath in Northwest Indiana said:

As absurd as the GMAC Mortgage issues sounds, it’s really a mirror of the times. In a time of new precedent in the foreclosure and real estate landscape, as with any industry under duress, mistakes will and have been made.

 

It doesn't excuse it, however, these errors have to be put into context of the time period. When the smoke has cleared there will be many homeowners who will get their vindication on the system.

 

The real question is how many even after the legal missteps will still not qualify for their homes and end up homeless?

 

James Barath

Northwest Indiana

# September 22, 2010 3:55 PM
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