GMAC Mortgage Halts Foreclosures in 23 States

September 20, 2010 No Comments »

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GMAC Mortgage told brokers and agents to immediately stop evictions, cash-for-keys transactions and lockouts in 23 states as the company may “need to take corrective action in connection with some foreclosures.”

It is unclear what exactly may have gone wrong in the foreclosure proceedings.

The two-page memo, which was marked “urgent,” also calls for the suspension of sales on properties that have already been foreclosed.

Additionally, brokers have been asked to notify buyers that the company will extend the closing date on all sales by 30 days.

And buyers will also be able to cancel purchase agreements and get their deposits back.

The following states are affected:

Connecticut
Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin

GMAC Mortgage, which is now part of parent company Ally Financial, was the fourth largest mortgage lender during the first quarter of the year.

The company saw first quarter loan originations of $13 billion, representing a 4.02% market share.

It is also one of the largest loan servicers in the country.

Roughly two years ago, GMAC closed all 200 GMAC Mortgage retail locations and cease lending at its wholesale lending subsidiary Homecomings Financial as a result of the mortgage crisis.

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