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GMAC case illustrates how South Florida attorneys can help stop foreclosure and hold banks accountable

GMAC has been forced to stop mortgage foreclosures in Miami and throughout Florida as a result of legal challenges, according to reports in the Miami Herald and Palm Beach Post.

An “urgent” memo dated Sept. 17 told brokers to immediately stop evictions in 23 states, cash-for-key transactions and lockouts, and to stop the foreclosures sales of properties already seized by the bank. GMAC Mortgage in now part of Ally Financial Inc. The memo comes as the company’s Tampa-based law firm has been withdrawing legal documents from GMAC foreclosure cases under “candor to the court” rules. The move acknowledges the firm may have been submitting inaccurate information to the court.

An experienced Miami foreclosure defense lawyer is essential when dealing with the possibility of a foreclosure, short sale or strategic default in South Florida. This case illustrates why having proper legal representation is so important. This could not only result in voidable foreclosures involving GMAC, but could disclose a more systemic issue involve thousands of foreclosure cases throughout South Florida.

At issue is ownership of many mortgages. As we previously reported on our Miami Foreclosure Lawyer Blog, banks have come under fire for repeatedly claiming mortgage documents have been lost or no longer exist. The practice of packaging and selling mortgages as investments has made proving ownership extremely complex. In the GMAC case, questions have arisen regarding whether a nationwide electronic system can accurately or reliably determine mortgage ownership.

The illusion of human verification was shattered when a GMAC employee admitted during a deposition that he could not vouch for the accuracy of the 10,000 affidavits he signed each month — the signature is meant to act as verification of validity.

RealtyTrac reports repossessions hit an all-time high in August with 95,364 bank takeovers. In Florida, 12,329 homes were repossessed in August. GMAC is the nation’s fifth-largest mortgage company.

If you are facing foreclosure in the Miami area or are considering home-loan modification, short-sale, strategic default or other options in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.

GMAC suspends foreclosure evictions and sales of seized property – 09-21-2010

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