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In The Us, Gmac Suspends All Foreclosures

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http://noir.bloomberg.com/apps/news?pid=20601087&sid=a7CfstbeOMEU&pos=1

Allys GMAC Mortgage Halts Home Foreclosures Across 23 States

By Denise Pellegrini

Sept. 20 (Bloomberg) -- Ally Financial Inc.s GMAC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.

GMAC Mortgage may need to take corrective action in connection with some foreclosures in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.

The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.

GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.

GMAC was created in 1919 to provide financing for buyers of General Motors Co.s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis. It rebranded itself Ally Financial last year, and continues to offer auto loans and mortgages.

Following is a table of the affected states.

Connecticut

Florida

Hawaii

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Nebraska

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Pennsylvania

South Carolina

South Dakota

Vermont

Wisconsin

What's going on here then? Can't sell, won't sell?

I assume they've realised that trying to resell foreclosed homes into the market costs them even more money than letting home owners live in them for free while they scrape together the next mortgage payment.

Edited by AvidFan

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So if you have a mortgage with GMAC, stop paying.

What is going on here? Offering the buyers they did have their deposits back too?

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http://noir.bloomber...fstbeOMEU&pos=1

Ally’s GMAC Mortgage Halts Home Foreclosures Across 23 States

By Denise Pellegrini

What's going on here then? Can't sell, won't sell?

I assume they've realised that trying to resell foreclosed homes into the market costs them even more money than letting home owners live in them for free while they scrape together the next mortgage payment.

I read something yesterday that said teat JP Morgan had been accused of fraud by a judge in the US because it was trying to foreclose on a house for which it was the servicer, not the mortgage holder. As a result JPM had no right to foreclose and resell the house in question.

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It may be they think what they will get in cash from a sale is so low it's better to rent them back to the previous "owner" (debtor) indefinitely.

In many cases, they could probably get the "owner" to pay them rent which over a couple of years adds up to more than they would get from auctioning the repo.

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I read something yesterday that said teat JP Morgan had been accused of fraud by a judge in the US because it was trying to foreclose on a house for which it was the servicer, not the mortgage holder. As a result JPM had no right to foreclose and resell the house in question.

That is basically it. There is a system called MERS, an electronic system that allows the ownership of the mortgage to be changed from organisation to organisation.

Now apparently MERS doesnt meet with the law in many states, which says that you have to have a signature and a stamp of some sort on a paper document to change ownership of the mortgage.

So some have taken ownership of a mortgage, whilst others have sold. The sellers have their money, but the buyers of the mortgage have no legal title at all to the property!!!

You couldnt make this up. So when there is a default, the servicer of the mortgage tries to foreclose, but cant, as they dont own the property either.

Who knows where this will end, but it could mean many many people in the US are paying their mortgages for no reason, as there isnt anyone who actually appears to own the mortgage.

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There is also the problem of what do all those newly homeless people do, if not simply break back in and live free anyway?

Particularly in the states where they have had to halve the police force.

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That is basically it. There is a system called MERS, an electronic system that allows the ownership of the mortgage to be changed from organisation to organisation.

Now apparently MERS doesnt meet with the law in many states, which says that you have to have a signature and a stamp of some sort on a paper document to change ownership of the mortgage.

So some have taken ownership of a mortgage, whilst others have sold. The sellers have their money, but the buyers of the mortgage have no legal title at all to the property!!!

You couldnt make this up. So when there is a default, the servicer of the mortgage tries to foreclose, but cant, as they dont own the property either.

Who knows where this will end, but it could mean many many people in the US are paying their mortgages for no reason, as there isnt anyone who actually appears to own the mortgage.

So ultimately there is no point in anyone paying the mortgage in the US as no one knows who actually owns the loan that bought the property?

That sounds like a great system.

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So ultimately there is no point in anyone paying the mortgage in the US as no one knows who actually owns the loan that bought the property?

That sounds like a great system.

It's about provability in the banking system.

As it's all a con, simple questions of the sort a 5 year old can ask utterly destroy it. Theres no money, no loan, no lien, no deeds, just a ponzi attached to some generalised fear and hope.

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So ultimately there is no point in anyone paying the mortgage in the US as no one knows who actually owns the loan that bought the property?

That sounds like a great system.

They are the Masters of the Universe remember. They don't have to be concerned with piddly little things like basic administrative competence. They have more important things to do, such as ripping everyone off.

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So ultimately there is no point in anyone paying the mortgage in the US as no one knows who actually owns the loan that bought the property?

That sounds like a great system.

It appears that there are many in the US who dont actually need to pay their mortgage, or at least that appears to be the case from what I can see.

Of course not everyone is in this situation, if your local bank holds your loan, and they didnt resale the mortgage to anyone, you dont get a free house.

But if your house has been sliced and diced, and was on MERS, and the originating bank has got its money, might be in your best interests not to pay and see what happens.

Sometimes I wonder how the Spanish banks remain open. That is as nothing to my wonderment over the solvency of the banks in the US.

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That is basically it. There is a system called MERS, an electronic system that allows the ownership of the mortgage to be changed from organisation to organisation.

Now apparently MERS doesnt meet with the law in many states, which says that you have to have a signature and a stamp of some sort on a paper document to change ownership of the mortgage.

So some have taken ownership of a mortgage, whilst others have sold. The sellers have their money, but the buyers of the mortgage have no legal title at all to the property!!!

You couldnt make this up. So when there is a default, the servicer of the mortgage tries to foreclose, but cant, as they dont own the property either.

Who knows where this will end, but it could mean many many people in the US are paying their mortgages for no reason, as there isnt anyone who actually appears to own the mortgage.

A guy I knew challenged his foreclosure under. I think, The Homestead Act or something similar. He won as well. In court he proved, in addition, that he had no contract with the people trying to foreclose, who had sold the mortgage on anyway. It was all a mess and even the judge couldn't make head nor tale of it. It almst went to federal level but they (the bank) backed off. I will try and dig out the case and post it later. It is standard practice to sell the mortgage on to a third party which is why I am surprised that people don't do it more often.

Edited by tomwatkins

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Another interesting tidbit:

Latest Real Estate Time Bomb: Title of Foreclosed Properties Clouded; Wells Fargo Dumping Risk on Hapless Buyers

Plus ineteresting comment on the zerohedgearticle about GMAC

What if they took a $100,000. Loan and Counterfited it. Then put $200,000. in many different Traunches.

What if they have to go back and find all of the pieces of the Loan to find all of the Owners before they can Forclose. What if they find twice the amount of Owners than the Loan Amount? I think they will.

Edited by Tonkers

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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