Ally Financial, formerly GMAC Mortgage, suspends foreclosures in 23 states
GMAC, the mortgage unit for Ally Financial, has suspended foreclosures in 23 states, according to a memo sent to its network of brokers and agents Sept. 17. In the memo provided to HousingWire, GMAC said it is taking "corrective action" on certain foreclosures in those areas, and any evictions, cash-for-keys, lockouts, and even sales of REO properties it has already taken back are to be suspended immediately. Brokers were instructed to notify buyers of a 30-day extension to any pending closing dates, and that they would able to cancel purchase agreements and receive a refund on their deposit. The affected states are Florida, New York, Ohio, Illinois, Pennsylvania, New Jersey, Connecticut, Hawaii, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Mexico, North Carolina, South Carolina, North Dakota, South Dakota, Oklahoma, Vermont, and Wisconsin. Ally Financial reported $791 million in nonaccrual mortgage loans on its balance sheet for the second quarter of 2010. According to the Treasury Department, GMAC reported 16,570 mortgages 60-plus days delinquent and eligible for the Home Affordable Modification Program (HAMP) as of June 30. It has completed more than 29,000 permanent modifications under the program through July. An REO broker in New York who lists GMAC properties told HousingWire that they are monitoring the properties. "We are aware of the present situation and we are awaiting further instructions," the broker said. "We understand they are reviewing NY files for potential concerns and we are standing by and maintaining our present properties." In June, American Residential Equities, a Miami real estate company sued GMAC alleging it failed to properly service mortgages and REO properties it owned. GMAC denied the claim at the time, and there was no immediate confirmation that this memo and the lawsuit are linked. The story first appeared in Bloomberg. Write to Jon Prior.