GMAC Halts All Foreclosures In 23 States On Heels Of Florida Judge Finding JPM Committed Court Fraud In Mortgage Misappropriation

As we pointed out last week, a certain judge in Florida set quite a precedent when he found that JPM, as servicer for a Fannie mortgage, had committed court fraud by foreclosing while not in possession of the actual mortgage. We then concluded that "The implications for the REO and foreclosures track for banks could be
dire as a result of this ruling, as this could severely impact the
ongoing attempt by banks to hide as much excess inventory in their books
in the quietest way possible." Not a week has passed since, and we are already proven right. Today, Bloomberg discloses that GMAC Mortgage, a unit of the affectionately renamed Ally Bank, has halted all foreclosures in 23 states, including Florida, Connecticut and New York. Who would have thought that being caught with your pants down, doing something so blatantly illegal as collecting on something you do not own, would actually have adverse consequences. And GMAC is just the beginning - we expect many more mortgage servicers to scurry now that the light has been shone on their shell game. The silver lining - the permabull pundits will cheer this development now that foreclosures will plunge off a cliff as mortgage holders and servicers scramble to reconcile who owns what, and just on whose balance sheet the mortgage flows should show up.

From Bloomberg:

GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.

The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.

Expect panic out of the banking crime syndicate once this story hits the MSM.

Comments

[StychoKiller]

Will someone just push the button on "Project Mayhem" already?

[frank]

do we have a list of the 23 states? have heard the following so far:

florida

new york

conn

florida

ohio

illinois

what is stopping everyone from no longer paying their mortgage?

[shawnlee]

I see this as a well conceived plan to window dress the foreclosure numbers just before the elections. Who wants to argue that the Obama administration will laud the dramatically improved foreclosure situation just prior to the November elections. Of course, all attributable to the administration's astute and timely management of the economy.
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[kummar]

$332 million, or just under 25% lower, and sellers came in well lower at "just" 72. But who needs details when you have the Fed... Certain not retail, which has now pulled money out of domestic stock funds for 19 straight weeks. So for those wondering just who is orchestrating today's move higher, please let us know if you find out.testking 70-448
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[kummar]

I see this as a well conceived plan to window dress the foreclosure numbers just before the elections. Who wants to argue that the Obama administration will laud the dramatically improved foreclosure situation just prior to the November elections. Of course, all attributable to the administration's astute and timely management of the economy.pass4sure 642-974 \ Pass4sure 642-446 \ Pass4sure 156-215.70 \ Pass4sure 312-50 \ Pass4sure 642-617 \ Pass4sure F50-531 \ Pass4sure C-TADM51-70 \ Pass4sure 640-864 \ Pass4sure 650-177 \ Pass4sure 642-627 \ Pass4sure 642-647 \ Pass4sure 642-165