GMAC Halts All Foreclosures In 23 States!!!!

[dixiegrrrrl]

Double yee haw
( I posted Alan Grayson's letter to Fla. court here:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9169948)


From Zero Hedge:

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.

More:http://www.zerohedge.com/article/gmac-halts-all-foreclosures-23-states-heels-florida-judge-finding-jpm-committed-court-fraud-

[Tippy]

1. K&R

[Vincardog]

2. And not a second too damned soon

[dkf]

3. Forget foreclosures. Does this mean you don't owe anything on your mortgage unless someone proves

They own it?

Is this a free pass on everyone's mortgage payment? Who owns your credit card debt? Who owns anything?

[girl gone mad]

4. If you've got the time and money to pursue it..

it may be worthwhile, especially if you bought your home in the last few years. Definitely consult a lawyer before taking any action, though.

[dixiegrrrrl]

5. I am determined to consult a lawyer before I pay off my mortgage...

BOA is the 'servicer" now,they bought the mortgage but I find Fannie Mae "owns it"
but
apparently it is illegal for Fannie Mae and Freddie Mac to "own" actual mortgages, they were designed
to "guarantee" some but not all mortgages.
so the question is:
Can BOA be trusted to actually pass along the payments?
Who issues the "PAID OFF" letter?

Who OWNS my payments?????

One of many tricky questions, eh?

[dkf]

7. But why doesn't everyone pursue this just for the heck of it?

Isn't this a free ticket? Shouldn't owners have to prove they own the loan just to collect funds?

I'm not saying people should stop paying, but maybe inquire as to the legitimacy of the request for payment.

[jtuck004]

6. I would consult a practicing attorney, and for sure

one that is familiar with real estate law -

but

I think what you have after that judgement is a home with no title unless you pay to have it created, and an unsecured loan for whatever you own. I think they could still come after you for that amount, even though it is no longer attached to the home. Your relief might be to file Chapter 13, or 7 which puts the house up for grabs as an asset (even w/o a loan it is worth something, maybe more since the loan is no longer attached. Someone would still have to create a title).

Will be interesting times...

[SlipperySlope]

8. Not in a no-recourse state.

Many states are "no recourse" states. That means the lender's sole recourse for you not paying them is to foreclose on your house. They have "no recourse" beyond that. Meaning if they can't foreclose then they can't come after you in any other way.

[jtuck004]

10. In my reading of those statues, which is why non-attorneys

should never give advice, (I might well be wrong) it seemed to be geared toward no liability for amounts beyond what the home is worth, not that you can just walk away from the debt, or if your actions cause harm. Some of the stuff I have read says they only apply in new purchases on loans, not on refi's, and there are several other points.

But, perhaps...

[dixiegrrrrl]

11. Unless you have re-fi aka secnd mortgage.

which automatically is a recourse loan.

Mr. d and I just had this discussion today, matter of fact.
He says since rates are so low, we maybe should re-fi.
I said re-fi puts us in a recourse loan, which is why all the advertising is going on for re-fis right now.
Plus re-fi fees.

As has been pointed out, the current issue is:
who the hell "owns" our loan in the first place????

[SlipperySlope]

12. I re-fi'd a couple months ago.

Hope I don't end up regretting it.

[dkf]

9. Very interesting analysis.

I personally have no mortgage but I do have several friends who have experienced life changes which messed up their financial situation. One is facing foreclosure and the other is prepared to one inevitable day declare bankruptcy.

[northernlights]

13. YES!!!!! Maine is on the list!!!!

Maybe now if a buyer turns up, my non-foreclosure, non-short sale will stand a chance! :bounce: