(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.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/11/24/bloomberg1376-L99VOD1A1I4G01-541C297MMC1T4R71D8FLSUFDG3.DTL#ixzz16IyLmMtf

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