Foreclosure Fraud – Bank of America, GMAC Suspend Foreclosures in Maine

(Updates with Maine attorney general in second paragraph.)

Nov. 24 (Bloomberg) — Bank of America Corp. agreed it won’t complete foreclosures in Maine and Ally Financial‘s GMAC Mortgage unit said it will halt sales of foreclosed homes in the state, Maine Attorney General Janet T. Mills said.

Bank of America will not “proceed to judgment on any pending matters” in Maine until it has finished an internal review of its foreclosure procedures and reported the findings to Mills, the state attorney general said today in a statement on her website. GMAC agreed to temporarily halt sales of foreclosed homes until the end of negotiations in an attempt to resolve Mills’ concerns about the company’s foreclosure procedures, according to the statement.

All 50 U.S. states are investigating whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures. The probe, announced Oct. 13, came after JPMorgan Chase & Co. and GMAC said they would stop repossessions in 23 states where courts supervise home seizures and Bank of America, the largest U.S. lender, froze foreclosures nationwide.

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6 Responses to “Foreclosure Fraud – Bank of America, GMAC Suspend Foreclosures in Maine”
  1. Kim Thomas says:

    I find that their seems to be very little action in non-judicial states in which they can illegally take your home with fraudulant documents in which the banks attorneys & foreclosure mills have turned out documents with assignments from MERS & lenders that are not even in business anymore but with the majic from MERS they can produce any document to take peoples homes and without a good foreclosure attorney the people are taken out of their homes illegally and without any hearing what so ever. The attorney generals office in Rhode Island needs to take a good long hard look at these companies and all states that are Judicial & Non-Judicial
    as this robo signing and fraudulant documents is wide spread and illegal. Kim Thomas Rhode Island can you hear me now?

  2. I’m very surprise that there is not a proposal on the table from anybody to take away all the modification programs form the hands of the Banks and Servicer’s, and another proposal to eliminate the dual track system were the banks are processing a modification but at the same time they are foreclosing on the property?

    • Cindy says:

      I think that would be because no other entity has a right to modify a loan it doesn’t own either.

      Homeowners should be VERY careful about accepting a loan mod, as you might be agreeing in the loan mod paperwork to let the bank off the hook for all done so far. They can still throw you out of the program in the trial period, decline a “permanent” modification after six months, and foreclose parallel with the workout arrangement. We need to keep in mind the servicers are making BIG money on foreclosing, and they make massive amounts of money as we pay for six months while arrears and fees accrue. If that were not so, it would make no sense that they refuse to extinguish second mortgages for the homeowners but it’s done by default in the sheriff’s sale. If the bank would let me keep my house for what is owed on the first, minus 10 percent, (as is likely as not at sheriff’s sale) I’d have no problem making the payment. I would, though, still be left with the clouded title.

  3. pelucheven says:

    It iz not easy to give thanks when your home will be foreclosed on December 1st.

    it is not easy, to believe there is hope, when your neighbors think their financial truobles were caused by you.

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