Ally Financial’s GMAC mortgage company in hot water over foreclosures

Ally Financial Inc.’s GMAC Mortgage unit has suspended foreclosures in 23 states amid suggestions that all the necessary paperwork is not in order.

The states affected are so-called judicial foreclosure jurisdictions, where a judge must sign off on the right to foreclose in court. Both Massachusetts and New Hampshire are not judicial foreclosure states, so the suspension does not apply here, but Massachusetts and New Hampshire homeowners with a GMAC mortgage in foreclosure can still seek bankruptcy relief.

 

By Doug Beaton

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