Ally Financial’s GMAC Mortgage unit has hired lawyers and accountants to review all of its foreclosures in all 50 states. The news is just breaking, but this means that along with Bank of America, a large portion of foreclosures are now “up in the air.” In related news:
- The number of state attorneys general reviewing bank foreclosure procedures is now up to 40.
- Wells Fargo has started to review foreclosures, but its not known if they are reviewing them in all states.
- An article in CNBC’s site discusses the “nightmare” scenario regarding trusts that are the last chain of custody in transferring titles. If trust documents turn out to be “funny” (not properly signed, back-dated, etc.), then that opens up the case for mortgagees to sue trusts … who will then be sued by investors in collateralized debt (large banks) … which will cause the trusts to sue the investors … and so it goes.