GMAC drops some Maryland foreclosure cases
You could be excused for wondering what happened to robo-signing, which roared onto the scene last fall amid predictions of foreclosure gridlock and then seemed to tiptoe out of the collective consciousness. But it's not gone.
GMAC Mortgage said Tuesday that it is dropping about 250 foreclosure cases in Maryland because of "potentially defective" documentation.
More on that story here, including the back-and-forth about whether a class-action challenge by Civil Justice in Baltimore was a key factor in the dismissals.
It might seem like a small number of cases, compared with the total number of Maryland homeowners in foreclosure. (It's certainly smaller than the 10,000 dismissals the Firedoglake blog reported, without sources, over the holiday weekend.) But it raises the possibility that other mortgage servicers might feel compelled to drop cases, too, and start afresh. A similar challenge against Wells Fargo is pending.
Here's the original story about the challenges, which were filed as motions in two foreclosure cases rather than as fresh class-action lawsuits. Civil Justice's argument was that mortgage servicers must abide by the rules not only to uphold their borrowers' rights, but also to avoid "years and years of litigation concerning the title to properties."
"We have a huge title problem that needs to be solved," Phillip Robinson, executive director of Civil Justice, said at the time. "The only way to clear title is to dismiss cases and make [mortgage servicers] do it the right way."