10,000 GMAC Foreclosures Stopped in Maryland - FDL

[WillyT]

10,000 GMAC Foreclosures Stopped in Maryland
By: David Dayen - FDL
Sunday January 16, 2011 7:00 am

<snip>

In a major ruling Friday, a coalition of nonprofit defense lawyers and consumer protection advocates in Maryland successfully got over 10,000 foreclosure cases managed by GMAC Mortgage tossed out, because affidavits in the cases were signed by Jeffrey Stephan, the infamous GMAC “robo-signer” who attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements.

The University of Maryland Consumer Protection Clinic and Civil Justice, Inc., a nonprofit, filed the class action lawsuit, arguing that any case using Jeffrey Stephan as a signer was illegitimate and must be dismissed. In court Friday, GMAC agreed to dismiss every case in Maryland relying on a Stephan affidavit. They can refile foreclosure actions on the close to 10,000 homes, but only at their own expense, and subject to new Maryland regulations which require mandatory mediation between borrower and lender before moving to foreclosure. Civil Justice and the Consumer Protection Clinic also want any cases with affidavits from Xee Moua of Wells Fargo, who has also admitted to robo-signing, thrown out, but that case has not yet been settled.

This was not the plan of GMAC and other banks caught using robo-signers last year. They hoped to undergo a pause in proceedings, run a quick “double-check” and then issue substitute documents in the same cases. That would have been a much more rapid solution for the banks and would have resulted in many more foreclosures. Now GMAC has to go back and basically file the entire case all over again, meaning they have to give notice of foreclosure to the borrower, engage the borrower in modification options, and basically run through the whole process from the beginning. They cannot use the shortcut solution, thanks to the class action suit filed. GMAC’s dismissal of every foreclosure in Maryland shows their doubts they would have won the class action.

The Consumer Protection Clinic at the U. of Maryland is a class taught by Peter Holland. Rather than just read and lecture about foreclosure fraud and consumer protection law, Holland has the class join motions, prepare cross-examinations and legitimately get involved in the cases. It reminds me of the class of Alan Dershowitz depicted in the film Reversal of Fortune, or the Medill Innocence Project investigating wrongful convictions at Northwestern. Given the national scope of foreclosure fraud, you can imagine classes like this springing up all over the country.

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More: http://news.firedoglake.com/2011/01/16/10000-gmac-foreclosures-stopped-in-maryland/

:kick:

[RKP5637]

1. Recommend!!! n/t

[Angry Dragon]

2. I am very disappointed that the President did not put a

moratorium on foreclosures to protect the people he took an oath to protect
because there was proof that fraud was being committed

[Oceansaway]

3. K&R...n/t

[dkf]

4. Are these modification laws significantly different from the Federal laws?

Those didn't seem to make much of a difference.

[dkf]

5. Okay I was reading up on the law and basically all it requires is a face to face meeting.

And it also requires wait times and fees on both sides. I can't find much on a modification program.

And look at this irony...

http://www.baltimoresun.com/business/real-estate/bs-bz-maryland-mortgage-program-20101220,0,4797928.story

Despite nationally recognized efforts to help residents avoid foreclosure, the state of Maryland has been slow to make mortgage payments more affordable for the struggling homeowners whose loans it owns.

Gov. Martin O'Malley and his administration have pressed national loan servicers in recent years to work with homeowners rather than foreclose. But it wasn't until four months ago that the state — which lends money to first-time homebuyers — designed a program to lower monthly mortgage payments to an amount that its borrowers in trouble could afford, The Baltimore Sun has learned.

Only three such modifications have been approved so far.

[sarcasmo]

6. GMAC is one vile company, we pulled a car loan from them back in the 90's.