Comments on: The GMAC fiasco A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: KSinCFL Mon, 26 Sep 2011 17:40:44 +0000 I arrived here one year later via links in current stories. Nothing has changed

rowhalen posted on Sept 23, 1010 “We’ll see some attorneys go to jail over this nonsense regarding documentation in FL and elsewhere”

I would have thought so too. Today, even Florida’s “Foreclosure Baron,” David J. Stern appears untouchable. This says it all:

“And yet, despite all this David Stern walks around as a member in good standing of the Florida Bar, even today. Not a blemish. Ignore everything else about this train wreck….just consider how many millions in taxpayer dollars were spent with judges and courts trying to unsort the mess he caused when he walked away. And Pam Bondi….what about the millions spent investigating all this and still nothing…..our state, a state of corruption.”
Matt Weidner, 10:26 AM, 9/24/2011 orig posted here losures/fannie-mae-ignored-robo-signing- abuses-in-florida-1876292.html#comment-1 876997

By: clbemail Thu, 23 Sep 2010 15:24:58 +0000 NC is also one of the states where a full stop occurred. BUT NC is not a judicial foreclosure state. Folks here attribute the work of our DOJ, Comm. of Banks, Legal Aid, Center for Responsible Lending and other fair housing advocates to why NC was included. Just wanted to highlight the good work of good people.

By: rcwhalen Thu, 23 Sep 2010 13:38:49 +0000 We’ll see some attorneys go to jail over this nonsense regarding documentation in FL and elsewhere. But don’t believe that the only reason for GMAC’s action were legal issues regarding perfection of collateral liens. See our comment on the operation issues facing GMAC and other legacy securitization shops. And don’t forget the link with GMAC to Bear Stearns, which is now JPM’s problema… Chris

By: DonQP Wed, 22 Sep 2010 13:42:09 +0000 Thanks for this post.

NPR’s financial program called “Planet Money” has barely touched this story. Wonder why? Here’s what I think. Ally Financial (Ally Bank, GMAC Mortgage, LLC) is the SOLE CORPORATE SPONSOR for the Planet Money program. So much for public radio and transparency right? I mean, you can count on NPR to parrot WaPo, right? tent/article/2010/09/20/AR2010092006193. html

By: hankC Wed, 22 Sep 2010 04:06:23 +0000 Felix,
My wife and I are currently in the process of trying to purchase a GMAC REO property. My attorney has been repeatedly amazed at the incompetence evident in our interactions with GMAC and their representatives. They have asked for an extension in closing on a property that is losing value by the minute. Their ‘procedural oversights’ may be minor but this is obviously an institution that is way over their heads. But should we expect any less from a financial institution started by GM?

By: 4closureFraud Wed, 22 Sep 2010 01:28:49 +0000 Felix,

I am the individual that reported on these affidavits last week on my blog that I believe started this “Fiasco”…

See… -what-re-jeffrey-stephan-of-gmac-florida -default-law-group-admits-to-violation-o f-professional-conduct-code/

The Foreclosure Mills here in Florida are pulling thousands of affidavits from multiple “robo-signers” because of this. (I can provide the notices)

I just followed up with a post on a deposition RE Beth Cottrell Robo-signer for Chase in where she states, and I Quote…

Q. So if you didn’t review any books, records, and documents or computerized records, how is it that you had personal knowledge of all the matters contained therein?

A. Well, I have personal knowledge that my staff has personal knowledge. That is our process.

See Cottrell depo here… -you-aint-the-only-one-full-deposition-o f-beth-cottrell-chase-home-finance-robo- signer-extraordinaire/

Hearing on motion for sanctions and dismissal of Cottrell case set for next month and can provide motion if interested…

So, the moral to the story is this isn’t only a GMAC issue, it is happening across the board.

This is just the tip of the iceberg.


By: MaggiesFarmboy Tue, 21 Sep 2010 18:35:46 +0000 Where I come from, you can be disbarred for knowingly and repeatedly violating the personal knowledge rule.

By: MarkWolfinger Tue, 21 Sep 2010 16:26:04 +0000 “which only serves to reinforce the impression that no banks, including Ally, can ever be trusted”

No kidding! Pretty obvious.

I wish Geithner and Summers had done the right thing and forced each of those bankrupt banks into bankruptcy.


By: MatNYC Tue, 21 Sep 2010 16:15:11 +0000 I tried buying a house from GMAC in a short sale last year. We spent more than three months in contract. And I spent the last month of this period on the phone with GMAC to get them to at least tell us what was holding them back. The short sale was something like $15k for a $400k house in Long Island. And we had the mortgage commitment done already.

GMAC waited for the day before the contract expired to reject our offer. The reason they gave us was that the seller failed to provide some form 90045.

This process showed that GMAC had nothing in place to properly handle short sales. We never had anyone on the phone who could do anything more than read a computer screen. Pretty aggravating.

By: AnonymousChef Tue, 21 Sep 2010 15:32:07 +0000 Felix,

I’m a corporate bankruptcy attorney – I’ve never done a home foreclosure, but I’m familiar with the process from business foreclosures. I’m not going to defend what Mr. Stephan did at all – knowingly filing a false affidavit is perjury, after all. I wouldn’t be surprised if there are other problems at Ally.

However, I do want to clarify that you’re only half right when you say that “the legal issues are surely substantively the same in the 27 other states as well.”

In the foreclosure states, the lender has to prove to a judge’s satisfaction that the loan is in default and foreclosure is proper. That proof is subject to the rules of evidence, which practically means it has to be in the form of an affidavit by someone with personal (rather than hearsay) knowledge. After all, your computers can’t testify.

In the power of sale states, the lender may not foreclose unless they can show there was a default. However, they’re proving it to themselves in a contract dispute, not proving it to a judge in a lawsuit, so they don’t need to follow the rules of evidence, and don’t need an affidavit. (This is the same reason why Reuters could fire you without a trial, unless there’s a contract stating otherwise).