Connecticut Attorney General’s Office
Press Release
Attorney General Investigating Defective GMAC/Ally Foreclosure Docs, Demands Halt To Its CT Foreclosures
September 27, 2010
Attorney Richard Blumenthal announced today his office is investigating defective foreclosure documents filed by GMAC/Ally Finance, Inc. in Connecticut and demanding the company freeze all foreclosures in the state.
“I am demanding a freeze in all GMAC/Ally foreclosure actions to forestall horrendous, illegal harm against homeowners,” Blumenthal said. “The GMAC/Ally foreclosure steamroller should be stopped so the company can be held accountable. My office has already confirmed that some defective documents were filed in Connecticut.
“The bank’s apparent failure to follow basic legal procedure — a potential fraud on the court — is appalling and unacceptable. Our investigation will enable strong legal action against GMAC/Ally, if warranted by the facts and the law. I will fight to assure that banks comply with clear legal requirements that protect homeowners from unfair foreclosures of their homes.
“My office will investigate whether other banks engaged in such practices because these failings involve much more than mere technicalities, as GMAC/Ally has claimed. As a consumer advocate and attorney, I am dismayed and shocked that the bank blatantly skirted legal requirements and procedural safeguards to increase the volume and pace of foreclosures.”
Blumenthal acted after a GMAC/Ally Financial employee recently admitted signing thousands of foreclosure affidavits a month without verifying their accuracy or having them properly notarized, as required by law. Blumenthal’s office has confirmed that the employee, Jeffery Stephan, signed foreclosure affidavits filed in Connecticut.
Failure to file proper affidavits can be a fraud on the court, potentially undermining foreclosures and underlying mortgages.
Blumenthal said, “Recent media reports indicate that GMAC/Ally submitted thousands of defective foreclosures to courts in 23 states, including Connecticut. Incredibly, GMAC/Ally allegedly appointed one person to review and sign thousands of foreclosure-related documents each month and provide affidavits to the courts attesting to the legal justification of the foreclosure actions. Although courts routinely rely on such affidavits, GMAC/Ally now admits that its affiant did not actually review the documents to ensure accuracy and did not sign them in the presence of a notary.
“The banking industry clearly learned nothing from the financial crisis. First, it cut corners and ignored the law to give consumers loans they knew could not be repaid. Now, it’s cutting corners and ignoring the law to foreclose and evict people from their homes.”
Blumenthal asked GMAC/Ally to:
· Provide case names and docket numbers of all Connecticut foreclosure cases in which defective affidavits were filed;
· Explain when and how it will inform defendants and the Connecticut Superior Court regarding the defective affidavits and documents, and whether it will withdraw the defective affidavits;
· Identify employees or contractors who reviewed and signed Connecticut foreclosure-related documents and describe their relationship to the bank;
· Outline steps to ensure the integrity of future affidavits and other documents submitted to the Connecticut Superior Court.
The deadline to provide the information is October 15.
Wait until they all figure out this is not just related to GMAC…
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We had the same problem with GMAC last year…When I heard about the halt on GMAC in 23 states I pulled out my foreclosure paper work and sure enough there was a signed paper by a “limited signing officer”. However we went through a housing service company that helped us stopped the foreclosure and get us into a plan…I could go on all day about the problems we have had with GMAC since our loan was sold to them 5 years ago. At one point they had reported to credit agencies that my husband was deceased not allowing us to get anything per credit wise. It’s crazy…I wish someone or some company, attorney or whatever would bring GMAC to it’s knees. However, I do believe that the modification we recieved is still wrong and we are still paying more that what we should in mortgage payments. Explain to me how we get a loan for a certain amount and our balance it higher? Or the fact that we were paying 6.25% in interest and now at %5 and our mortgage payment is still the same…something isn’t right and this company needs to be dimolished…So many consumer complaints and nothing is ever done.
The problem may turn out to be the same old ancient enemy…………GREED………..too many “officials” can and will sell out (and may their souls go to HELL) because the banks have all of the financial leverage and can buy anybody for anything. That is what it is! Pray we can get our economy grounded basically by weeding out the thieves and banksters who are mere sociopaths. Just google Sam antar the father of “crazy eddie” fame. When interviewed he said crooks have no FEELINGS. We must separate them from decision making for the rest of us.
I can’t wait until they catch on to Nationstar and it’s affiliates. I am battling Nationstar over the same problem that mere law-firms in Pennsylvania are swearing to affidavits to the information contained in my documents, after several paper document trails were derailed deliberately as Nationstar has never had any control of the NOTE, and told me to go after the original lender, which at the time was Homecomings, which is now defunct and was part of GMAC which was then taken over by GMAC, which states they were not the original lender, then they assigned Nationstar the servicer, which is the party trying to foreclose on me. Now comes the funny scheme, Nationstar Say’s they are not the owner of the note, GMAC claims they were only the servicers, and now they put MERS as the entity in control. How many times does MERS have to state that they have no powers of Law to back the claim that they ever had the NOTE in their ownership. They cant ever put MERS as an assignor because of the fact they don’t have licence to do business as any lending institution, and leaving the NOTE blank where the owner of the mortgage and NOTE should be listed, so they can insert MERS as assignee, but MERS is not able to be an assignee because they admitted constantly that “MERS has acknowledged, and recent cases have held, that MERS is a mere “nominee”—an entity appointed by the true owner simply for the purpose of holding property in order to facilitate transactions. Recent court opinions stress that this defect is not just a procedural but is a substantive failure, one that is fatal to the plaintiff’s legal ability to foreclose.
That means hordes of victims of predatory lending could end up owning their homes free and clear—while the financial industry could end up skewered on its own sword.”
This is very disturbing even after I have rescinded my loan and agreement for lack of disclosures, and proof of ownership of the NOTE. The Note and other documents that were sent to me from a Qualified Written request, has the date of Aug 2, 2007
Even the NOTE has a signature not bearing a proper witness or Notary on site at the time of closing, as no others were at the closing except the RE agent and myself, and the Notary was signed after the actual closing on August 5, 2007 which was on a Sunday in 2007. The signature was signed by a right handed person, when I am and have been a left handed signer since I could write. The whole purchase has defects in the documents, including, blank spaces, forged signature, forged initials, not disclosing Radon by the RE, the appraiser did not disclose the Radon or the severe deterioration of the main brick work which is powdering and just disintegrates when poked with a small screwdriver, disclosures not being given as to my rescission and other TILA, RESPA, and several other authorities that are involved with Real Estate transactions. Even UCC CODES have been violated, since they lied to investors about the actual NOTE and are therefore, in violations of such frauds even against the government programs intended to help the Homeowners, as the NOTE was paid off by several investments and securities avenues, by the fraud. By using MERS as the original NOTE holder on the deed, they have destroyed all avenues of the actual lender to put claim on the mortgage, and therefore cannot find the true entity that can even foreclose on the property.
And the Courts want to give the bankers and lenders the benefit of the doubt? I say this country needs some good ole fashioned revolt, before it’s too late to save our constitutional rights.
I hope eveyone’s mortgage is wiped out in this country because of all the illegal forgeries they did. It’s not just GMAC it’s every servicer. Kondaur Capital is the biggest one of them all!