GMAC Halts Evictions and Foreclosure Sales Due to Questionable Documents
Robo-signer admits signing 10,000 affidavits per month without personally verifying the documents associated with the case.
Palm Coast, FL – September 22, 2010 – Florida is among several states with judicial foreclosure laws. Before taking possession of a foreclosed property, lenders are required to file for a summary judgment. The process includes a requirement for documentation verifying that the foreclosing lender owns the underlying mortgage and note. Robo-signer, Jeffrey Stephan has admitted that he signed as many as 10,000 affidavits per month without verifying the documents associated with the cases. The disclosure prompted mortgage lender GMAC to halt evictions and sales of foreclosed properties in 23 states, including Florida.
GMAC is a unit of Ally Financial Inc., which is majority-owned by the U.S. Treasury Dept since the financial bale out. Ally processed foreclosures for several large banks as well as for Freddie Mac and Fannie Mae.
In related news, Florida State Attorney General Bill McCollum has announced an investigation of three large law firms that reportedly handle about 80% of Florida foreclosures. The firms are:
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Law Offices of David J. Stern in Plantation
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Law Offices of Marshall C. Watson in Fort Lauderdale
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Shapiro & Fishman, with offices in Boca Raton and Tampa
McCollum’s office is also reportedly investigating Florida Legal Default Group in Tampa. The investigation’s focus is is on fabricated documents.
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