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."
Categories: The foreclosure mess
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Comments
Want proof that this area is still -way over the top- in denial? Take a look at this gem. No offfense to the current owner but, can does anyone else really view this as more than a 140k home? Have people forgotten how much money $275k is? This home last sold for 116k in 1998 when our economy WASNT in the crapper and we made more money and had lower energy and health costs.
I wonder if todays buyers understand that when they are buying at these prices, they are funding the previous owners retirement instead of their own.
http://www.redfin.com/MD/Bel-Air/2011-Thomas-Run-Rd-21015/home/14503413
Posted by: elweedz | January 19, 2011 7:22 PM
This has got to be the most ridiculous thing I have ever heard.
by CHARLENE PERRY | 2011/01/21 |
Yesterday I wrote about 250 Maryland foreclosures being dismissed because of shoddy foreclosure work, liars affidavits and robo-signing and then today I read from Housing Wire.....
CHARLENE PERRY's Blog :: Edit blog entry
Fannie Mae will increase the maximum allowable fee servicers can pay Maryland foreclosure attorneys to $1,300 from $950 for mortgage loans referred to them on or after Feb. 1.
But wait, it gets better!! The reason they need a raise is because they need to do more work in Maryland in order to correct deficiencies.
A recent decision in Maryland courts dismissed thousands of foreclosure cases initiated by GMAC Mortgage for faulty foreclosure affidavits. The company said it would refile the documents, which could possibly lead to the extra work for all foreclosure attorneys in the state as they attempt to straighten out their procedures.
Now, let me make sure I understand this. If I make a mistake over and over again, and then I get caught trying to correct it in a shady manner, not only will I not be punished, but in fact I will be REWARDED.
Who in their right mind would think is the right way to handle this debacle? Why hasn't Fannie Mae penalized these foreclosure mills for their shoddy work, by either removing them from the "Retained Attorney Network", fining them or making them pay out of pocket for the re-filing of these foreclosures.
Can you tell, I am livid!! And to whom do I address my concerns? Fannie Mae, my Maryland representatives? And will they even care? I sincerely doubt it.
Let us not forget that both Fannie and Freddie are full blown GSE's; that every penny that they spend comes out of tax payer dollars and that we, the consuming public are paying through the nose for this raise to the same people who were complicite in the creation of this chapter of the foreclosure debacle.
There is probably nothing that I can do to affect any change in this decision, but you can be sure, I will write and blog and get the word out to as many people and organizations as I can to make it clear that this is just plain WRONG!!
Posted by: Charlene Perry | January 21, 2011 12:20 PM
Charlene don’t you realize that the problem is not Fannie and Freddie....this entire system is corrupt. The middle class (or at least what's left of it) does not matter anymore. We should only concern ourselves with helping the rich getting richer. Welcome to Third World America.
Posted by: Jaded | January 21, 2011 2:08 PM
Jaded,
I'm getting there my friend. Middle Class? What's that?
Rich and Poor is all that's left I fear
Posted by: Chalene Perry | January 21, 2011 7:42 PM