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Posted at 10:58 AM ET, 02/ 1/2011

Ally Financial says it has fixed vast majority of mishandled foreclosure affidavits

By Sarah Halzack


Ally Financial, one of the firms at the center of the foreclosure debacle that unfolded last year, is reporting that it has made significant progress in correcting improperly filed foreclosure papers.

In a press release touting its 2010 earnings report, the lender said that of the approximately 25,000 affadavits that may have been problematic, "all but 2,548 have been remediated or, where necessary, re-executed." In other words, about 90 percent of the cases have been resolved.

The financial results showed growth year-over-year from 2009. For 2010, the company formerly known as GMAC reported net income of $1.1 billion, an improvement over 2009's net loss of $10.3 billion. In the fourth quarter alone, Ally had a net income of $79 million, which also compares favorably to its 4Q net loss of $5.0 billion a year earlier.

Ally is trying to claw its way back from the troubles that befell it during the financial crisis, which ultimately led the company to accept government bailout money. In recent days, it has been reported that Ally is actively looking for a bank to underwrite its IPO. A public stock offering would be a key step in Ally's attempt at a rebound.

By Sarah Halzack  | February 1, 2011; 10:58 AM ET
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So, abra ca dabra we can now un-cack an egg! FRAUD!!!

Posted by: BJofRoswell | February 1, 2011 2:37 PM | Report abuse

Let's see... they've changed their name from GMAC to Ally (probably because none of us would continue to buy their cars when they foreclosure on our homes and skate on modification - which is truly just a scam)... but what I just can't figure out - is how, when GMAC used securitization trusts to fund their loans; and the controlling trust documents say the original loan documents must be assigned to the trust by the closing date - how can GMAC assign anything after the the trust closed when they already delivered the original docs to the trust? And how can they foreclose without acknowledging the trust or investors that they sold the loan to - even if they are servicing it?

Posted by: virginia14 | February 1, 2011 2:42 PM | Report abuse

So for several years, likely a decade, banks and foreclosure mill law firms (if that can legitimately be thought of as the practice of law) have been regularly employing robo-signers, robo-perjurers and robo-forgers in an unknown number of cases. It is safe to say in hundreds of thousands of cases, and possibly millions of cases. In the process they have committed fraud on the court, tampered with public records, completely perverted our judicial system (if it can even be thought of as a system that actually dispenses justice any more), created so many titles issues it will take the country many years to straighten out that mess, AND have used the fraud to steal from families their largest single investment, their security, their stability, and their mental, emotional and physical health.

First, there is no reasonable basis for anyone, including our regulators and courts, to trust anything they say, claim or do. Second, the idea that this big a mess could be cleaned up and corrected in a couple of months is beyond ridiculous.

I call BS on this one. Tweeett!! (is that how you spell the sound of referee's whistle blowing?) Ally is hereby penalized 15 yards and henceforth will be forced to participate in any judicial proceedings from a distance of 15 yards outside of the courtroom!!

Posted by: StupendousMan-DefenderofLibertyFoeofTyranny | February 1, 2011 3:52 PM | Report abuse

So, have the courts reviewed these "remediations?" Most of these notes were transferred without proper recording of those transfers, so there's even a question as to whether Ally even has standing to claim against those mortgages.

Until they show proof otherwise, their track record should deny them the benefit of the doubt.

Posted by: Anonymous | February 1, 2011 7:05 PM | Report abuse

Interest rates are simply incredible on mortgages right now. It's not uncommon to see 30 year rates down in low fours and 15 year rates in the threes. Week after week, the rates keep dropping If you are looking for rates in three then search online for "123 Mortgage Refinance"

Posted by: caseyrose246 | February 2, 2011 2:00 AM | Report abuse

Stop blaming the bank! They wouldn't have been in this mess if people were paying their mortgage and there weren't a ton of foreclosures to process!

Posted by: Anonymous | February 2, 2011 12:09 PM | Report abuse

I really thought Washington Post reporters were better than that. Where are the tough questions?
How do you undo fraud?

Posted by: Anonymous | February 2, 2011 12:46 PM | Report abuse

If you are planning a mortgage refinance then you should search online for 123 mortgage refinance before you decide they found 3.25% refinance with bad credit history and also did instant analysis of my mortgage.

Posted by: damonpaylor | February 6, 2011 2:54 AM | Report abuse

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