Govt-backed GMAC stops home evictions: Updates
GMAC needs to "correct" its eviction procedures
The fourth-largest US home lender, "Ally Financial Inc.'s GMAC Mortgage unit" majority-owned by the US government after a 2008 bailout, "told brokers and agents to halt evictions tied to foreclosures on homeowners" in Pennsylvania, New Jersey, New York, Florida, Illinois and 18 other mostly East Coast and Midwestern states, reports Bloomberg here.
GMAC may need "corrective action" in some of its foreclosures, according to an internal memo whose contents Bloomberg said were confirmed by GMAC. "Brokers were told to immediately stop evictions, cash- for-key transactions and lockouts, according to the document..." Some transactions will be cancelled, others delayed.
Ally, formerly a part of General Motors Corp., is based in Detroit, with around 2,000 workers at its Fort Washington, PA office center.
NEW: "GMAC Mortgage is not suspending foreclosures," but "has temporarily suspended evictions and REO closings in certain states while we conduct a review of our processes and procedures," says GMAC spokeswoman Gina Proia.
ALSO: "A potential issue that was raised in a number of existing foreclosures challenging the internal procedure we used for executing one or more judicially required forms." GMAC is still foreclosing and has meanwhile developed a new, better way to evict, she added.