Monday, September 20, 2010

GMAC/Ally Halts Foreclosures in Wisconsin

GMAC/Ally Mortgage halted foreclosures in Wisconsin and 22 other States today.

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 marked “urgent.” Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to immediately stop evictions, cash- for-key transactions and lockouts, according to the document, addressed to GMAC preferred agents.

Seems that GMAC may not actually have legal grounds to take possession. A lawyer problem.

A really, really, really, really BIG lawyer problem.

Bill McCollum, AG of Florida, is investigating three lawfirms used to process the foreclosure actions.

Meantime, McCollum, Crist, and the Treasurer of Florida are going to be investigated (if not tarred, feathered, and hung from the highest nearby tree) for approving Florida's purchase of high-yield "investment" securities from (among others) Citi. Seems that the State's investment board did NOT have legal authority to purchase such "investments."

Florida lost its ass on the paper.

HT: Ticker

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