GMAC To Stop Foreclosures in 23 States, Boston Bankruptcy Blog Reports
GMAC Mortgage, the holding company formally an arm of General Motors, has announced that it will stop all foreclosures, evictions and purchase and sale agreements, and suspend sales of foreclosed properties in 23 states. The reason appears to be that many of the foreclosures they were undertaking were not properly documented – the lawyers for GMAC failed to secure the original promissory notes and other necessary documentation for court proceedings. Massachusetts homeowners should look carefully at any foreclosure actions, using a consumer or Boston bankruptcy lawyer to be sure the documentation is valid.
While the announcement does not affect GMAC mortgages in Massachusetts, they have nine locations here. Nevertheless, they are the fourth largest mortgage lender in the US and hold mortgages throughout the Commonwealth of Massachusetts.
Apparently the Florida Attorney General is investigating the fraudulent affidavits filed by GMAC lawyers. In the cases reported, the lawyers are signing, under the pains and penalties of perjury, that they have the proper documentation to foreclose, when, in fact, they do not. A GMAC executive testified that he signed thousands of affidavits without verification.
We recommend Massachusetts homeowners to work with their lenders if they are behind in payments and, if foreclosure occurs, to consider contesting the legal action. Many times, a review results in a recommendation for personal bankruptcy in Massachusetts but many times there is a way to work it out – as homeowners in 23 states are now getting the opportunity to do.