Consumer Law

GMAC Caught Faking Affidavits, Stops Foreclosures

By Sam Glover

GMAC, a large mortgage lender, has been foreclosing like mad, apparently without bothering to check its facts. Here is an excerpt from a deposition of GMAC employee Jeffrey Stephen:

Q. So other than the due date and the balances due, is it correct that you do not know whether any other part of the affidavit that you sign is true?

A. That could be correct.

In short, the affidavits might as well be faked. Caught in the act, GMAC has stopped evicting homeowners and foreclosing mortgages in 23 states. Or mostly stopped, anyway.

Believe it or not, there are laws against this sort of thing. It’s just that nobody has bothered to enforce them.

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Full post as published by Caveat Emptor on September 21, 2010 (boomark / email).