Ally Mortgage/GMAC Foreclosures

This taken from a news bulletin From Old Republic National Title Insurance Company:


Last week officials at GMAC Mortgage, a division of Ally Financial, Inc., announced that they are halting evictions of foreclosed borrowers and are halting REO sales in 23 states. GMAC announced it was taking this action as a result of the discovery that affidavits filed as a part of foreclosure records may have been signed by a person(s) who did not confirm the facts stated in the affidavit. The company also said that some of the affidavits may not have been properlynotarized.

The Attorneys General in Connecticut and California have ordered GMAC to halt foreclosure activities in their states. News reports indicate that state attorneys general in several other states are investigating or are planning to inquire into GMAC foreclosure practices. The statements made and actions undertaken by GMAC, together with state investigations underway, require that Old Republic National Title Insurance Company and its affiliated underwriters, exercise caution when dealing with properties which have been the subject of a foreclosure by GMAC. The Company will not insure title to any property which has been foreclosed
by Ally Financial, Ally Bank or GMAC until further notice.
The issues surrounding GMAC foreclosures reflect a recent national trend of challenges to foreclosure actions.

All agents are advised to be extremely careful in reviewing foreclosure records.
It is likely that challenges to the foreclosure practices of lenders in addition to Ally Bank/GMAC will occur in the current economic environment.
Thank you for your attention to this bulletin.

If you have any questions concerning this matterplease contact an underwriter in your local state office.