Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
William A. Roper, Jr.
The Wall Street Journal reports that GMAC is dismissing essentially all of its Maryland foreclosures and will refile these with corrected paperwork:

"GMAC Tells Court It Will Dismiss, Re-File Certain Foreclosures", by Nick TIMORAOS (Tuesday, January 18, 2010)

Firedoglake had reported over the weekend that 10,000 GMAC foreclosures were being dismissed as a part of a class action settlement:

"10,000 GMAC Foreclosures Stopped in Maryland" (Sunday January 16, 2011)

While Firedoglake was first with this story and it was much more dramatic in their telling, I think that the WSJ got the story RIGHT.  The WSJ says that about 250 foreclosures are to be dismissed.  It seems UNLIKELY that GMAC had 10,000 foreclosures underway in Maryland.

Quote 0 0
William A. Roper, Jr.
The Washington Post has also weighed in with its take on the Maryland foreclosure dismissals:

"Ally Financial to withdraw Maryland foreclosures signed by Jeffrey Stephan" (January 19, 2011) 


It appears to me that Firedoglake was probably confusing and conflating the 10,000 perjured affidavits a month purportedly executed by Jeffrey STEPHANS for the count of dismissals in the Maryland cases.

Quote 0 0
A few more details from the Baltimore Sun:

Quote 0 0
William A. Roper, Jr.
According to the Wall Street Journal, Wells Fargo seems to have employed a similar strategy in Maryland:

WSJ: "Wells Fargo to Refile Some Foreclosures in Maryland", by Nick TIMORAOS (January 19, 2011)

"Wells Fargo & Co. said on Wednesday that it has begun dismissing an unspecified number of pending foreclosures in Maryland as a result of potential flaws in its document-handling practices.

The disclosure came after GMAC Mortgage Corp, a unit of Ally Financial Inc., told a Maryland court on Friday that it would similarly dismiss around 250 pending foreclosures in the state in order to avoid a potentially lengthy class-action lawsuit.

The bulk dismissals allow both banks to restart foreclosure proceedings without the threat of litigation and title disputes, but they raise the risk of additional costs and delays because Maryland has stepped up scrutiny of banks' paperwork in recent months. The state also began requiring lenders last July to conduct mediation with delinquent borrowers in a bid to avert foreclosures, which could further lengthen the foreclosure process.

. . ."

See: [subscription]

I would expect the other major servicers to quickly follow.

This is a prudent business strategy.  Every one of the pending foreclosures is in jeopardy and the foreclosure process in Maryland is particularly speedy.  By pulling these foreclosures, conducting a new private sale and then refiling, they will minimize their losses.

Other non-judicial foreclosure states mostly do NOT have a similar provision for a judicial order of confirmation of sale.

Quote 0 0
Write a reply...