GMAC agrees to freeze foreclosures
GMAC Mortgage LLC, the firm in the center of an ongoing national foreclosure controversy, has agreed to temporarily suspend foreclosure proceedings in Maine.
Attorney General Janet Mills announced last Wednesday the company agreed to halt sales on homes that have been foreclosed on until concerns about its procedures have been resolved, according to a press release. The suspension is expected to affect just under 100 properties and could last several weeks, according to the Portland Press Herald. The Maine Attorney General's Office in October joined the other 49 states by launching an investigation into foreclosure mismanagement by some of the nation's largest mortgage companies, including GMAC, where an employee admitted signing more than 10,000 foreclosure documents a month without verifying the information, a practice dubbed "robo-signing."
Mills also said Bank of America has agreed not to proceed to judgment on any pending matters in Maine until it completes an internal review of its procedures and informs the Attorney General's Office of its findings, which the bank has said could be as early as next month, according to the release.
For more on the foreclosure controversy, see "Finding a door."
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