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GMAC’s Errors Leave Foreclosures in Question

GMAC’s Errors Leave Foreclosures in Question
September 27, 2010, New York Times

The recent admission by a major mortgage lender that it had filed dubious foreclosure documents is likely to fuel a furor against hasty foreclosures, which have prompted complaints nationwide since housing prices collapsed, David Streitfeld writes in The New York Times. Attorneys general in Iowa and North Carolina said they were beginning separate investigations of the lender, and the attorney general in California directed the company to suspend all foreclosures in that state until it “proves that it’s following the letter of the law.”


Save Americans by Sticking It to Them
September 24, 2010, Bloomberg (Opinion)

The banks were saved by the American people. Now who will save the people from the banks? Last week, in a rare and possibly fleeting victory for the little guy, Ally Financial Inc.’s mortgage-servicing unit temporarily halted evictions tied to foreclosures in 23 states. This came after some attorneys for homeowners caught the company saying things that weren’t true in its court filings.


Calif. Atty. General Asks GMAC to Cease Foreclosures
September 24, 2010, Associated Press

California's attorney general wants GMAC Mortgage LLC to stop foreclosures in the state until it proves it is complying with a state law aimed at preventing foreclosures. California Attorney General Jerry Brown said Friday that he directed Ally Financial Inc., which owns GMAC, to prove it is complying with a law that prohibits lenders from taking steps to foreclose on a home before determining if the borrower is eligible for a loan modification.


JPMorgan Based Foreclosures on Faulty Documents, Lawyers Claim
September 26, 2010, Bloomberg

JPMorgan Chase & Co. faces a legal challenge next month that could cast doubt on thousands of foreclosures after a mortgage executive at the bank said she didn’t verify documents used to justify home seizures.  Lawyers for a Palm Beach County, Florida, homeowner asked a judge to throw out a foreclosure as a penalty for misleading the court, according to attorney Tom Ice of Ice Legal PA. They’re citing a May 17 deposition in which the JPMorgan executive said she signed thousands of affidavits and documents supporting the New York-based bank’s claims without personally checking loan records. The court is scheduled to hear arguments Oct. 19.


Banks in Florida, Washington Shut as 2010 Failures Climb to 127
September 24, 2010, Bloomberg

Regulators shut lenders in Florida and Washington amid losses on real-estate loans, pushing the number of U.S. bank failures to 127 for the year. Haven Trust Bank Florida of Ponte Vedra Beach and Arlington, Washington-based North County Bank were closed, according to statements on the website of the Federal Deposit Insurance Corp., which was named receiver. The failures cost the agency’s deposit-insurance fund $104.7 million.

Posted: Mon, September 27 2010 8:14 AM by Octavion

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# May 25, 2012 10:22 PM

Ako said:

I'm sorry about your situation with Vanderbuilt Mortgage and unnatsredd your feelings.  I will first point out their required stance in this and then try to give you a few options.  They own a loan that has a built in remedy in the instance of default feature.  What you want them to do, and what they can do, are not on the same page, yet.  They seem to be eagerly awaiting the trigger date to begin a process of foreclosure as things seem.  You are afraid they will and have given them a head start by being frantic.  Pause a second and remove fear and emotion from the equation.  They dont want to really start the foreclosure process but will if forced to.  They soon will have the legal right to foreclose,and cannot agree to your proposal as it has no tangible security in their minds.  What you paid, owe, and its assessment are not factors to their bean counters.  Their customer service might be horrible but they own the card table and you have a losing hand in this issue if you let them push your buttons.  The solution here will not be in blaming them even if they are as awful as you say.  Please dont think I'm trying to back them up here, I'm merely pointing out some harsh facts.  Lets look at a few ways that might change your situation now.  As another respondent stated, call their loss mitigation dept and talk to a manager.  For them to start anything beneficial they need something in good faith.  Send them 1 payment and buy yourself an extra 30 days market time.  Their opinion might be well if you cant pay for 2 houses at least pay on the first one.  They could be thinking how did you qualify for 2 homes and now arent able to pay us.  They might think well it isnt our fault you moved, etc.  That game wont get anywhere toward resolving this, not for them, not for you.  Get the anger out of your system and then with a cool head and fresh perspective figure this thing out.  Heres a few tips, A   Get that place marketed by a real agent, 60 days with no offers is too long.  B   Send a payment, at least 1 before the end of the month.  C   Have your attorney call their loss mitigation dept and negotiate for you a forebearance program.  D   Dont let them hear you panic, that screams to them that you wont make another payment.  E   Keep in mind they are bluffing to get you to make your payments current, the danger here is your close to their legal right to foreclose.  They dont really want to, but cant tell you that, or nobody would make a payment.  If you try to get their permission to send anything less than 2 payments they will always say no.  Make them refuse a single payment sent and you might have more leverage but it has to be sent asap, ideally with a letter from your attorney.  If you make an adversary out of the other party all you can negotiate is war, try turning the tables on them a bit and find a livable and equitable solution.

# July 9, 2012 8:41 AM

Brandon said:

Excellent information Aaron!We here at the Home Ownership Center (www.hocmn.org) haven't seen a draiatmc rise in the price point of homes either  what we are seeing are a rise in homeowners seeking services from OUTSIDE of the core cities of Mpls/St. Paul.  The farther you get out of the cities, in many cases, the lower the home price as well, which may  distort' the picture somewhat   foreclosures may be hitting higher INCOME brackets   but it's not reflected in the HOME PRICE. ? Reply</a>

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# September 7, 2012 10:30 PM
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