Judge ruled Chase committed fraud, GMAC stops foreclosures and evictions in 23 states

This sure is getting very interesting!

As more judges refuse to allow lenders to foreclose on homes without the actual NOTE in possession, banks stop foreclosing and some even postpone closings on sales of foreclosed homes.

The implications:

  1. Fewer foreclosures will be reported, making it look like the economy is improving.
  2. Buyers of foreclosed property are taking the risk of losing the house to the previous owner if a court later rules that the foreclosure was illegal.

If I was buying foreclosed real estate, I would NOT close unless title insurance covered foreclosure deficiencies.

And what about all those states with non-judicial foreclosures such as California?

GMAC Halts All Foreclosures In 23 States On Heels Of Florida Judge Finding JPM Committed Court Fraud In Mortgage Misappropriation

Tyler Durden's picture

Submitted by Tyler Durden on 09/20/2010 08:39 -0500

As we pointed out last week, a certain judge in Florida set quite a precedent when he found that JPM, as servicer for a Fannie mortgage, had committed court fraud by foreclosing while not in possession of the actual mortgage. We then concluded that “The implications for the REO and foreclosures track for banks could be dire as a result of this ruling, as this could severely impact the ongoing attempt by banks to hide as much excess inventory in their books in the quietest way possible.” Not a week has passed since, and we are already proven right. Today, Bloomberg discloses that GMAC Mortgage, a unit of the affectionately renamed Ally Bank, has halted all foreclosures in 23 states, including Florida, Connecticut and New York. Who would have thought that being caught with your pants down, doing something so blatantly illegal as collecting on something you do not own, would actually have adverse consequences. And GMAC is just the beginning – we expect many more mortgage servicers to scurry now that the light has been shone on their shell game. The silver lining – the permabull pundits will cheer this development now that foreclosures will plunge off a cliff as mortgage holders and servicers scramble to reconcile who owns what, and just on whose balance sheet the mortgage flows should show up.

From Bloomberg:

GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.

The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.

Expect panic out of the banking crime syndicate once this story hits the MSM.

Can’t wait to see how this plays out.



3 Responses to “Judge ruled Chase committed fraud, GMAC stops foreclosures and evictions in 23 states”

  1. JPMORGANCHASE///?HOMEEQ////NOW OCWEN IS NOW AUCTIONING MY HOME COME MARCH 3,2011,THESE DIRTY BASTARDS HAVE HAD ME JUMPING THRU BARRELS,I JUST GAVE HOME ICK AS I LIKE TO CALL THE 12,000.00 DOLLARS –MADE MT TRIAL PAYMENTS ON TIME I MIGHT ADD AND MY 4TH PAYMENT TO OCWEN,THESE PUKES TELL ME MY MOD EXPIRED /WIRED MY 5TH PAYMENT BACK TO MY BANK AND NOW THEY ARE SELLING/AUCTIONING MY HOME 3/7/2011. SHIIIIT!! SOMEONE PLEASE HELP ME .THIS IS EXTORTION.I WILL BE DAMNED IF THEY ARE GONNA TAKE MY HOME!!! SINCERLY JOHNNY HACKER [phone # deleted] PLEASE NO SHORT SALE IM KEEPING MY HOME

  2. Prepare a FACTUAL SUMMARY.

    List what happened in chronological order.

    [date]: Foreclosure started, $… mortgage and $ … delinquent,
    [date]: applied for modification
    … whatever happened, your correspondence, agreements, payments, etc.

    You just posted in ALL CAPS and most people consider you a moron or ignorant. Most people won’t read your post because they have an ALL CAPS reading disability as I do. I tried to read your post, but probably missed parts of it.

    There are MANY MILLIONS of people like you who NEED HELP.

    Make yourself stand out from the whining crowd and take action.

    Present yourself as someone who CAN be helped. Unfortunately, most people are beyond help, trying to hang on to homes they simply can’t afford. So make it clear in your summary that you CAN afford the payments.

    It sounds like you are in a good position to prevail, but I don’t have the time to work for you free of charge.

    However, I’ll be glad to help you help yourself.

    You can have your own blog here and I’ll help you fine tune your summary, get in touch with attorneys, legislators and regulators if you do the “leg work”, scanning and posting docs, etc.

    If you are rational and willing to do the work, you will likely prevail.

    Just noticed that you posted your phone number and deleted it as only scammers would contact you.

  3. Chase has made 9 illegal foreclosure attempts on my home every month since Oct 2011. If they had a legal right they would have foreclosed the first time.
    Hold Strong and keep making your payments, even if the send them back. You want them to breach the contract (not you) ehrn you go to court you have to go in with clean hands.
    Hope this helps other victims