GMAC (Ally) Expands its Foreclosure Review Nationwide
GMAC’s mortgage unit, Ally Financial, has followed Bank of America in reviewing its foreclosure proceedings on a nationwide level. Ally continues to halt evictions in only 23 states, but has hired a “specialized team” to review all their foreclosure holdings with special attention given to foreclosure sales. So far, they have found no evidence of improper foreclosures.
This comes at a time of much national debate regarding mandatory moratoriums on foreclosure. The White House has issued statements that it does not support a mandatory moratorium on foreclosures due to potential “unintended consequences.” Most economists and housing experts agree that although this may be a short-term opportunity for distressed homeowners to stay in their homes, a foreclosure freeze would worsen the housing crisis and push recovery further into the future.
We agree that suspending the foreclosure process will hurt the US housing recovery and want to educate all homeowners that even though their foreclosure may be frozen for the time being, lenders are still able to consider short sales. This extra time to sell your properties should not be taken for granted.