As Predicted, Ally (GMAC) Bankruptcy Will Delay Loan Modifications, Settlement Actions for Borrowers but Foreclosures Will Continue

“GMAC is using bankruptcy to maximize its position in litigation,” said Tirelli. “It will proceed in foreclosures, but for any borrower with a claim against GMAC, they are saying, Sorry, go to NY and file a motion.’”


As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement Actions for Borrowers

When Ally Financial’s mortgage unit Residential Capital filed for bankruptcy last week, I had an inkling it would spell trouble for the foreclosure fraud settlement the parent company signed with state and federal regulators. How would individuals get loan modifications in the midst of a bankruptcy proceeding?

Sure enough, the New York Post, which actually has somewhat decent housing coverage on occasion (and often more timely coverage than the “paper of record” New York Times), reports that this bankruptcy has already become a strain on families:

Two weeks ago, a Westchester family had finally reached the end of seven years in foreclosure hell.

Then the plate tectonics of the massive bank that controls their fate shifted. Ally Financial, formerly GMAC, filed Chapter 11 bankruptcy for its troubled Residential Capital mortgage unit last Monday. Ally owes taxpayers roughly $12 billion in bailout money and is majority-owned by Uncle Sam.

Unemployment caused the Westchester family to miss mortgage payments and seek Chapter 13 bankruptcy protection. Now they are in limbo, awaiting approval by the ResCap Chapter 11 judge.

“Resolution is on hold,” said the family’s lawyer, Linda Tirelli, who could not disclose more details because the deal is still pending. “GMAC has sought bankruptcy protection like many of its customers have.”

Rest here…


32 Responses to “As Predicted, Ally (GMAC) Bankruptcy Will Delay Loan Modifications, Settlement Actions for Borrowers but Foreclosures Will Continue”
  1. darren says:

    Our money went into some holding acct.our payment was taken out auto until. The day they came to my door and demanded we get out.foreclosed.only notice was in the newspaper we don’t receive.nice monopoly gmac has going for them I’d say.

  2. Emma says:

    Can anyone tell me who to contact about GMAC/Homecomings, I live in NY and my problems with them goes back 8 years ago. They said my payment was late ad put me in forclosures prevention and then would not except my payment…… I had an attorney and he said this company just wanted my house plain and simple. (I put a lot down on it) Now my house I sold quickly at a loss then to let it go into foreclosure and let them get anything. Is there someone who I can talk to? I want to see if I can be included in anything. Any information will be helpful.

  3. Big Gee says:

    Here is something that holds water… Pam. We were ready to close a in-house refy by Ally then a medical condition happened to which I promptly notified GMAC and reported the problem. Now mind-you, the representative for Ally was heading our way that week for the FINAL paper work to be signed, after 2 1/2 months processing time, but they caught wind of this medical condition,,, It was over and the wheels started there turning. We were,,,??? Yep, denied…
    Then as I stayed in touch with GMAC nothing was mentioned to help us with the situation as we were AAA customers of GMAC with a $1650.00 per month payment at 6.38% to which at times we were 3,4,5 payments ahead of current month. Now of course they don’t look at the past anymore, no corporate does,,, because the hand shake is gone. That’s corporate America. Notice the respect to America only…
    Now with that said, we took classes on the modification process to prepare for the paperwork and the paperwork etc, etc, etc and was rejected on the HAMP program due to a 45 day window that is impossed to complete the process unto which a phone call came to my cell while sitting with my Veteran Representative to which was conveyed to me by GMAC that they needed a tax form that was not received to complete the modification. This came at the 44th day, the 44th day, again, THE 44TH DAY!!! to be faxed that same day only, unknown to me that it takes at least 2 days for a PERSON to get the docs off the fax at GMAC and down load the data,,, so now my 45 day window is up… This is @*&#&%? crazy… To say the least!!!… NOW with that said, my permanently handicapped wife and I are in default, in foreclosure but not yet sale dated and are trying to short sale. “””””””””””So you tell me where the playing field is even in this game””””””””””””””””
    America is screwing up, my friend. Wouldn’t you say??? OH I almost forget… Every form or document sent to us from GMAC in Iowa has never had a postal date stamped on the envelope only a bar code that is not tracked nor can it be tracked by the post office. So what this tells me is the time sensitive documents needed to save the home are being manipulated by the mortgage companies and the outcome is failure. . .

  4. Amy says:

    WOW, I wish I found this earlier this year. GMAC told us that the only way we could do a short sale was to stop making our payments. They sent us out tons of paperwork that we kept filing sending back and went through this for about 8 months. Finally have an offer on the house since they told us in Sept. that we could put it on the market. When calling GMAC was informed our loan was sold and they had filed Chapter 11. Now I am fighting with the new company to honor the short sale ugh!

  5. Pam says:

    As for the person who wrote this article, GMAC has not delayed any modifications, before or during the bankruptcy. They process & approve thousands of modifications everyday.

  6. Pam says:

    There are alot of complaints on this page, but so far I haven’t seen any valid complaints. Please learn the mortgage process before you assume anything. If you feel you have a valid claim, then please file one with a reputable attorney who knows the mortgage process very well. But beware of fraudelent attorneys who promise you anything & everything, take your money & provide no results. In my 30 plus years in the mortgage industry, I’ve seen more fraudalent attorneys than mortgage companies. Sad, but true. So please do your homework & research them first. On another note, if you are going through a foreclosure, because you just simply didn’t pay your mortgage, is that really GMAC’S fault? If GMAC submits a modification to your investor & the investor denies it, is that GMAC’S fault? Please do your homework people?

  7. Pam says:

    Find out who your investor is, because they are the ones who gets the money. GMAC only owns a small amount of loans & the rest, they service for other companies. So if GMAC is not the investor, they only make money off the fees, because they are a fee based company. Your actual mortgage payment goes to the investor, which could be Fannie Mae, Wells Fargo, etc.

  8. Pam says:

    Also, if you never received your permanent modification docs, but you know for sure you were approved, just call & request a copy. Also let them know that it wsa never recorded with your county. They will mail a copy of the docs to you with no problem & have it recorded as well. However, some counties are not required to record mortgage docs, so you would need to make sure this is a requirement for your county.

  9. Pam says:

    Emitt, yes your HAMP modification will stay in place. GMAC can’t alter your contract & has no intentions on it. GMAC is really a good company, but has had problems since Ally took over.

    • Gary says:

      Gee. One would think that it would be smarter if somehow the rears could be pardoned so the home owner can live life again. Tried the mod thing… Got on my knees and begged… Put under unwanted stress for a well documented and legit reason the put us $8700.00 behind. Where did America go???

  10. Pam says:

    Craig please learn the modification process before you criticize. All companies have to abide by the same process. If you are going thru a modification, late charges accrue until the process is complete. If you are approved, the late charges are waived. However you can’t sale your property & apply for a modification also, you have to choose if you want to keep the property or not. If you sale, you are responsible for the late charges, because you accrued them by not making your payments on time, which is not GMAC’S fault. If you don’t want to pay the late charges, then maybe a short sale is your best option.

  11. Pam says:

    There isn’t anything to stop. Another company has already purchased GMAC & it’s not Nationstar.

  12. Craig says:

    Does anyone know if you were forced into filing chapter 11 because you were going thru a motification and for 11 months you made the payment they said and then they did your paper work and keep saying that paper’s were missing and then they would not let you sell your home without paying a huge fee or as they called it late charges so you were forced into filling chapter 11 are you entitled to file aganist GMAC Please let me know

  13. Lisa Alarcon says:

    So is GMAC in charge of all Homecomings mortgages? We lost our home in 2008. GMAC is on the list of 5 companies involved in the national mortage settlement happening right now…..Anyone know for certain if Homecomings is in fact a GMAC company? thanks!

  14. Emitt Wallace says:

    I wasn’t even aware that GMAC was Ally Financial (with ResCap as a separate entity) until last week when I received a letter with GMAC letterhead announcing the bankruptcy filing. I was told that I would be receiving a lot of bankruptcy notices, but that I did not have to do anything about them. My wife and I have a modification agreement (HAMP) with GMAC Mortgage. I pray that the Chapter 11 restructuring will keep the loan modification in place.
    Kneeling on Scorpions

    • Attorney Wendy Alison Nora says:

      It is typical for the mortgage fraud enterprises to tell homeowners to be told that they don’t have to do anything. You probably have a claim for a permanent modification, based upon detrimental reliance, promissory estoppel and/or offer and acceptance. You would be well-advised to file a claim for specific performance of your loan modification in the bankruptcy case. GMAC is trying to sell its servicing platform to Nationstar in the bankruptcy and if you do not exercise your right to be heard in the bankruptcy case, you may be starting all over with Nationstar. I am trying to stop the sale of the servicing rights to Nationstar and require GMAC to disclose the assets and liabilities it is presently concealing from the court, including homes that it has taken illegally.
      I find that praying for wisdom, strength and discernment are useful meditations. Praying for the a certain outcome may be disappointing, when wisdom, strength and discernment can influence the outcome by the exercise of free will and determination.

      • Emitt Wallace says:

        We sent our signed, acknowledged HAMP Modification Agreement to GMAC Mortgage on December 20, 2010. To date, we have not received a signed lender acknowledgment of the modification and nothing has been recorded at the San Mateo County Recorder’s office in California. We were orally assured (I know oral assurance is not binding) that the modification went through, and we have been paying the modified mortgage payments since January, 2011.
        I am 69 years old and an inactive member of the California State Bar. I think it is time for me to reactivate my bar status and, as you suggested, file a claim for specific performance. In our case I would ask that the modification be acknowledged in writing and also that the terms of the existing Modification Agreement (whatever it may be worth) be continued under the Chapter 11 restructuring. I am researching the effect of Chapter 11 restructuring on existing HAMP Modication Agreements.

      • Caren says:

        Wendy I know this is a old post if you get notification please contact me I have filed a claim in the GMAC/RESCAP BK 11 My home was taken illegally I have a securitization audit
        I want to hire someone who can bring this claim to a settled state since i have lost everything through the actions of this Company

  15. Attorney Wendy Alison Nora says:


    • Attorney Wendy Alison Nora says:

      Sorry, meant to say, not for “an improper purpose or for improper purposes.”

      If the GMAC Fraud Group is allowed to dispose of all of its assets without court supervision even to the extent of filing its Schedules, the mortgage units of Wells Fargo, Chase and CitiBank will follow suit. I don’t think Bank of America can take the same course because it has merged with its mortgage subsidiaries to avoid state consumer protection laws under the National Bank Act, but nothing will stop them from spinning off new LLCs and corporations into which they can transfer their assets except bank regulations, which are currently not being effectively enforced.

      This is a call to action which should take very little of your time, if you are a GMAC Fraud Group victim (having lost your home to forged and perjured documents) or are facing foreclosure at this time based on a false documents. How do you know the documents were/are false? If you did not borrow from a GMAC entity, the documents are most likely forged, especially if you have MERS in your mortgage. I have drafted the pleading as upon information and belief, but you need to do some basic research. If you are reading this website, you probably already have done your research.

      I cannot be responsible for this advice as a lawyer because none of you are my clients. You have to be responsible for your own actions and decisions. I am just giving you the tools, if they apply to your case.

  16. Attorney Wendy Alison Nora says:


    a/k/a RESIDENTIAL CAPITAL CORPORATION Case No. 12-12020-mg
    1177 Avenue of the Americas Jointly Administered
    New York, New York 10036, et al.

    [YOUR NAME] is in possession of an asset (my home) against which the Debtor is making a claim for payment of debt required to be filed on Schedule B, lines 18 (liquidated debt) and listing the foreclosure as a contingent claim and identifying the location, nature and type of property on Schedule B, line 21 (contingent claim.) Debtor does not have sufficient proof of its claimed interest in my home and may be using forged documents to support its foreclosure claim.
    I object to the automatic stay being lifted to allow the Debtor to proceed to foreclosure of my home until its claim that I owe it any money and that it has a lawful contingent claim against me is disclosed in its schedules (which are yet to be filed) and under penalty of perjury as required by 18 secs. USC 157 and 3571.


  17. Attorney Wendy Alison Nora says:

    I disagree with Attorney Tirelli on this point: We can object to this bankruptcy as a veil to continue corrupt practices.
    As a creditor, I am objecting to the Interim Order Lifting the Automatic Stay to pursue foreclosures because the bankrupt entities have not filed the required Schedules (Assets, Liabilities, Income, Expenses) or the Statement of Financial Affairs (which includes the two past years’ income, all payments in excess of $5000.00 for 90 days prior to the filing, all lawsuits in which the entities are involved, etc.) I am also objecting to the interim permission the Court gave to sell their servicing rights and the computer (fraud) servicing platform before the required Schedules and Statements of Financial Affairs are filed. They also have interim permission to continue to play the derivatives market in which they claim through an Affidavit of their CFO that they have $19 Billion in “collateral.” They should have nothing to hedge or insure. They are bankrupt. The least that a bankruptcy court can do is tell the Debtor that it cannot keep going to the casino, but it also should not give carte blanche for business as usual before it even accounts for its assets and liabilities.
    Every homeowner who lost a home to the GMAC Fraud Group has a potential claim for the value of the home. The GMAC Fraud Group never had the notes or the lawful assignment of mortgages. If you are going through a GMAC Fraud Group foreclosure, you should file a short plain statement that you object to the stay being lifted until your alleged obligation to a GMAC bankrupt entity is listed as an asset in the bankruptcy. Your claim and objection should be filed no later than June 5, 2012 with the
    Clerk, United States Bankruptcy Court
    for the Southern District of New York
    One Bowling Green
    New York, NY 10004-1408
    The claim form is available on line:
    See more information next post.

  18. glenn greenwood says:

    I am part of the Homecomings/GMAC racket. Luckily for me,
    my state requires judicial foreclosure and mediation with an official bank representative during the process.
    I am just wondering who the bank will send (what documentation also).. someone from MERS, GMAC, or a rabbit out of a hat.

    • Pamela Edwards says:

      They will also use who ever has the trust in my case I never went up against GMAC.I went up against US Bank who supposedly had the trust found out later mortgage was never registered in trust until US Bank attempted to put it there 4 years after the fact.Non securitized loan and credit.It didn’t stop them from taking our home.Be very careful these people will stop at nothing to get your home.WA. state non-judicial foreclosure state one of the worst.

  19. Pamela Edwards says:

    I’d like an answer to that question as well TTTT,original loan with Decision One,then came Homecomings then GMAC.As I understand it D.O. went into banckruptcy in 07.I was only with them 6 mo. then Homecomings, one day the paperwork changed to Gmac.Never signed anything with Homecoming or Gmac never even knew who they were.Didn’t stop them from taking my home.I’d really like to find put how in depth this really goes.

    • Me says:

      You don’t have to sign anything.
      The loan docs allow the servicer to sell/transfer/move to whomever they want.
      Your loan, while extremely personal to you, is merely an account number bundled with thousands of others and moved as they please.

  20. To Tell The Truth says:

    The are continuing the foreclosure cause they need to collect the insurance and then leave the homes abandoned…they get to keep the loan amount in a foreclosure that is held in escrow at the Clerk’s……?????

  21. To Tell The Truth says:

    MMMM Whatever happened to Homecomings Financial????A GMAC company that was the one servicing the loans when everything hit the fan and GMAC quickly took over…

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