Network News

X My Profile
View More Activity

Illinois becomes fourth state to suspend Ally Financial foreclosures

The Illinois department of financial regulation on Wednesday called on Ally Financial to stop all foreclosures currently underway and hold off from initiating new ones until the mortgage process can be investigated.

"Home foreclosure is serious business. It is no time to start cutting corners.The department intends to keep a close watch on Ally/GMAC Mortgage to ensure that its processes are fair to homeowners and in compliance with the law," Brent Adams, the state's secretary for financial and professional regulation said in a statement.

The state said more than 100,000 loans in Illinois are serviced by Ally and three quarters of those are primary mortgages.

In the past few days, Colorado, Connecticut and California have also asked the company to halt foreclosures. Five other states have opened civil investigations.

The legitimacy of foreclosures handled by the company came into question after Ally said on Sept. 20 that it had found irregularities in the preparation of documents submitted to courts in support of the actions. An employee of the company's GMAC unit, "robo-signer" Jeffrey Stephan said he signed off on up to 10,000 documents a month without reviewing them thoroughly.

Illinois was already on the list of 23 states in which Ally had halted evictions and resales of homes that were repossessed. The regulator's request broadens the moratorium to foreclosure actions in the early part of the process.

By Ariana Eunjung Cha  | September 29, 2010; 6:59 PM ET
Categories:  Housing  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   StumbleUpon   Technorati   Google Buzz   Previous: Franken to Justice, Treasury: Investigate foreclosure irregularities
Next: Warren extends olive branch to bankers


Get information on how to reduce your debt by filing for bankruptcy

Posted by: joeaken30 | September 30, 2010 2:39 AM | Report abuse

Are you looking to file for bankruptcy? Compare your bankruptcy options and information

Posted by: joeaken30 | September 30, 2010 2:40 AM | Report abuse

Anyone needing some investigative information regarding the following lenders, brokers, servicers, foreclosure mills, Title Companies, officers and notaries:
Goldman Sachs
Litton Loan Servicing
Fremont Reorganizing
LPS Title Company
The Wolf Firm, A Law Corp
Marti Noriega
Debra Lyman
John Crandall
Brenda Mckinzy
Leigh Blackwell
Daniella Marie Garrett
Melissa Bell
Go to the link below:

Posted by: Anonymous | October 2, 2010 11:48 PM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.

characters remaining

RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company