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Ally's GMAC unit withdraws foreclosure affidavits signed by second employee

Was Kristine Wilson another "robo-signer"?

Attorneys for homeowners in Florida say Ally Financial's GMAC mortgage unit has begun to withdraw affidavits submitted in support of foreclosures that were signed by a second employee. Like Jeffrey Stephan--the document processor who admitted in sworn testimony that he signed 10,000 documents a month without reviewing them--Kristine Wilson signed as a "limited signing officer" for GMAC.

In a request to withdraw an affidavit listing debts owed by a homeowner that was signed by Wilson in a Palm Beach County Circuit Court case, lawyers for GMAC say that "information in the affidavit may not have been properly verified."

The attorneys said, however, that the "amounts reflecting the indebtedness contained therein" . . . "were believed to be correct when filed."

Ally, which is majority-owned by the U.S. Treasury Department, did not immediately respond to requests for comment.

By Ariana Eunjung Cha  | September 25, 2010; 11:34 AM ET
Categories:  Housing  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Lawmakers to Fannie Mae: Why are you using lawyers 'accused of regularly engaging in fraud' in foreclosures?
Next: California orders Ally Financial to stop foreclosures in state

Comments

So I guess the Tax payer owns these houses and banks, or we have vested interest, we are litigating ourselves.

Posted by: Anonymous | September 25, 2010 2:43 PM | Report abuse

Please don't let this story fade away into the background! The truth of the matter is that every major lender (and I'm sure the minor ones as well) are guilty of similar business practices. Just examine the assignments at the local county clerk's office and you will see the same people signing with different titles on behalf of many different lenders. You won't have to look any further that what was filed yesterday in any major city to find this, that's how pervasive this situation is.

The truth is that these are not isolated "mistakes" or "rogue employees". This was a system set up by the higher ups at these companies, because they know they can't prove who owns the notes and mortgages because they never transferred the notes and mortgages to the Trustees that were responsible for creating mortgage backed securities out of these mortgage pools. Some really intelligent people (read major sarcasm) decided that the transfers only had to occur when there was a default. Then, after the fact, they would create the paper chain necessary to foreclose, but until then, it was too much trouble to endorse notes and assign mortgages (or deeds of trust). Now the MERS system is being found out as having no clothes and ALL the major lenders and Fannie & Freddie are freaking out, because this house of cards is about to fall down. Court after court in the last six months had determined that MERS has no authority to transfer notes as they were never a party to the note and a transfer of a mortgage without the underlying note is a nullity. THis is the other fly in the ointment of the big lenders trying to foreclose. The only way they can foreclose is to fabricate the evidence and lie in their complaints and hope the homeowner doesn't show and the judge is too overworked to look hard at the paperwork.

Hello investors in MBS and CDOs and synthetic CDOs! (and Homeowners too!!!!) Its time to get your lawyers into the game and sue the !@#$%^ out of your Trustees, servicers and originators(assuming they are still around). Depose these executives and find out whose bright idea it was to put these poor low to mid level robo signers in this predicament (yes I do feel sorry for the robo signers because I truly believe that they had no idea of the implications of what they were doing and were just trying to hold on to what was becoming so scarce, i.e. a job) Find out if those mortgage pools were ever actually transferred into your Trustees hands. Then find out how all the payments have been acoounted for. And for god sakes someone do an expose about how the Servicers get paid whether the loan is performing or nonperforming, whether its in foreclosure or not and how there is absolutely NO incentive for the Servicers to cooperate with a modification that's in the best interest of the homeowner and the investors in the MBS. No wonder they "lose the paperwork" and "close the file until the paperwork is resubmitted" over and over again.

Posted by: its1 | September 25, 2010 8:26 PM | Report abuse

Are you looking to file for bankruptcy? Compare your bankruptcy options and information http://bit.ly/avB0jI

Posted by: bradpitt26 | September 26, 2010 1:13 AM | Report abuse

You can view Kristine Wilson's affidavit and withdrawal notice here...

http://4closurefraud.org/2010/09/25/kristine-wilson-robo-signer-part-deux-allys-gmac-unit-withdraws-foreclosure-affidavits-signed-by-second-employee/

Keep the pressure on!

And thank you for covering these issues...

Posted by: 4closureFraud | September 26, 2010 7:20 AM | Report abuse

wow what a comment, its1! you and marcy kaptur! STAY IN YOUR HOMES, AMERICA!

Posted by: Anonymous | September 26, 2010 10:57 AM | Report abuse

Great comment its1. A post I read on Mandelson Matters, http://bit.ly/ckfVaa, has an interview from the employee of one of the major servicers who worked in their foreclosure dept. It talks about several of the things you've mentioned, but more specifically about how the servicer gets paid whether the loan is performing or non-performing.

This whole process is so convoluted and no one is over-seeing that it is done correctly. Mean while, people are losing their homes.

Keep up the investigative journalism.

Posted by: phx4closuretalk | September 26, 2010 12:52 PM | Report abuse

we applied to GMAC for either refinance or loan modification based on income reduction. they kept asking documents already provided, just like many other applicants have reported. we realized it was a gigantic waste of time and energy, and told GMAC to go to hell. take it from me, and do not waste your time and energy trying to work some fair deal out with these banksters, whether or not federally owned.

Posted by: Anonymous | September 26, 2010 3:20 PM | Report abuse

You really need to question the role of "illegal immigrants" in this picture, on November 3rd I will.

charleymiller2010 Unaffiliated for US Senate in Colorado geared to replaced the lame duck on November 3rd!

Posted by: Anonymous | September 26, 2010 10:04 PM | Report abuse

Remember people - even if the person is guilty of whatever, if a technicality is found, such technicality being in favor of the accused, the accused can and does get off.

Just ask Ollie North how many days he spent behind bars, even though he was found guilty of several felonies.

Posted by: critter69 | September 27, 2010 9:29 AM | Report abuse

The second comment by its1 is better than most published stories and asks the questions we wonder why the journalists at the Washington Post and NYTs are NOT asking!

Please follow its1 lead and do the kind of stories you were once known for. Lots of interlocking pieces in this one.

Posted by: LottaCrabtree | September 27, 2010 10:38 AM | Report abuse

GMAC did a modification for us and lowered our percentage to 4%; we thought it was a great deal and signed. Big mistake. It barely lowered our monthly payment because they tacked on 12K to the pricipal amount which took our total balance due higher than what we orginally paid for the house we were already underwater with! My husband lost his job in `08 and was able to find another job but at lower pay and less hours. We are still trying to recover and have managed to hold onto our house for a year since that crappy modification, but now were are in default again and GMAC has told us our house goes into foreclosure Nov. 2nd and returned our recent payment we made this past month. I don't understand why they returned our payment if we don't go into foreclosure until November? We filled out more paperwork for another modification today, but I'm worried and scared its the end of the road for us and our home. I don't know what to do anymore, how can we fight this huge corporation?

Posted by: Anonymous | September 28, 2010 10:56 PM | Report abuse

FYI - we are in Texas where the foreclosure process is swift. : /

Posted by: Anonymous | September 28, 2010 11:02 PM | Report abuse

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