10,000 GMAC Foreclosures Stopped in Maryland

Discussion in 'Economy' started by Trajan, Jan 16, 2011.

  1. Trajan
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    Trajan conscientia mille testes

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    10,000, wow. This may be producing some of the "better rulings in this crisis" as the author says, but good for who? Okay the robo signing issue is a problem BUT these folks are not paying their mortgages and as long as this continues, the market doesn't clear and we are in stasis overall.


    Oh and note, GMAC, the finance arm of GM ( yes they got greedy and started backing loans for homes)....we bailed that financial service out btw.




    In a major ruling Friday, a coalition of nonprofit defense lawyers and consumer protection advocates in Maryland successfully got over 10,000 foreclosure cases managed by GMAC Mortgage tossed out, because affidavits in the cases were signed by Jeffrey Stephan, the infamous GMAC “robo-signer” who attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements.

    The University of Maryland Consumer Protection Clinic and Civil Justice, Inc., a nonprofit, filed the class action lawsuit, arguing that any case using Jeffrey Stephan as a signer was illegitimate and must be dismissed. In court Friday, GMAC agreed to dismiss every case in Maryland relying on a Stephan affidavit. They can refile foreclosure actions on the close to 10,000 homes, but only at their own expense, and subject to new Maryland regulations which require mandatory mediation between borrower and lender before moving to foreclosure. Civil Justice and the Consumer Protection Clinic also want any cases with affidavits from Xee Moua of Wells Fargo, who has also admitted to robo-signing, thrown out, but that case has not yet been settled.

    This was not the plan of GMAC and other banks caught using robo-signers last year. They hoped to undergo a pause in proceedings, run a quick “double-check” and then issue substitute documents in the same cases. That would have been a much more rapid solution for the banks and would have resulted in many more foreclosures. Now GMAC has to go back and basically file the entire case all over again, meaning they have to give notice of foreclosure to the borrower, engage the borrower in modification options, and basically run through the whole process from the beginning. They cannot use the shortcut solution, thanks to the class action suit filed. GMAC’s dismissal of every foreclosure in Maryland shows their doubts they would have won the class action.


    snip-
    As I said, this doesn’t mean that GMAC cannot refile foreclosures in these cases. But they have to spend a lot of time and money to go back to the beginning and redo every case, and must adhere to Maryland law of allowing mediation.

    Maryland is a judicial foreclosure state which has produced some of the better rulings during this crisis.


    more at-
    10,000 GMAC Foreclosures Stopped in Maryland | FDL News Desk
     
    Last edited: Jan 16, 2011
  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    This is also an issue of Mortgage Securities Bundling. How can anyone, or any bank, foreclose if they don't have clear and free title?

    When the mortgage was bundled and sold, in some cases multiple times, who really has the title? The paperwork isn't clear and may never be.
     
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  3. blu
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    blu Senior Member

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    MERS is a huge deal, if congress doesn't basically grant amnesty to every company involved in mortgage backed securities then no house can be foreclosed on. all of the major banks would go bankrupt overnight
     
  4. william the wie
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    william the wie Gold Member

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    The question is whether further bailouts can make it through congress? I doubt it. Many TBTF bond holders will wake up to find themselves stock holders.
     
  5. Pepe
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    Pepe Senior Member

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    I agree.

    This would be an unprecedented agreement between Liberals and the Tea Party supported Pubs.

    I agree again.

    Haircuts are a coming along with possible Chapter 7 and Chapter 11 Filings by the TBTF.

    A Qui Tam lawsuit in Tennessee against MERS is seeking millions, if not tens or hundreds of millions, in "Damages" for the local governments defrauded by MERS in the collection of revenue from Property Transfers.

    I'm gonna need a scorecard to keep track of the players.
     
  6. Trajan
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    Trajan conscientia mille testes

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    and that leaves us where? this another unintended consequence of the bubble....its all part and parcel on this huge scale and has to be settled and not in years either.

    look, the mortgage holders or their agents are not going to file on a house ( unless its an egregious mistake , yes, which happens) IF they are being paid. These folks are not paying, they know they are not paying and the loan holder knows it too.

    Frankly this paper chase may be legal BUT its also causing much damage and we don't even know how bad it truly is yet. At the end of the day if they cannot prove they are paying, then litigation can wait. let the market clear.
     
  7. JWBooth
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    JWBooth Gold Member

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    ...show me the note....


    :eusa_whistle:
     
  8. Pepe
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    Pepe Senior Member

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  9. iamwhatiseem
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    iamwhatiseem Gold Member

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    You know guys...25 years from now when history reveals this mess, I don't know what will be more troubling - the corruption and complete lack of ethics among 100,000's of individuals, politicians and our most "trusted" entities that completely failed in their duties; or that they didn't stop, and caused the 2nd collapse.
     
  10. Trajan
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    Trajan conscientia mille testes

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