GMAC mortgage class action over alleged false foreclosure documents

October 8, 2010 by

A class action lawsuit has been filed in Maine against GMAC Mortgage, LLC (GMAC) alleging, among other things, that GMAC filed knowingly false certifications for foreclosure and false affidavits in support of foreclosure. The GMAC foreclosure documentation class action lawsuit complaint alleges that thousands of Maine homeowners have lost their homes due to judgments based on alleged false GMAC foreclosure certifications and affidavits.  Maine is one of the 23 states where judicial sign-off is required to move ahead with a foreclosure, and where GMAC (now Ally Financial) has suspended evictions.

In depositions of GMAC/Ally officials, as well as those at top mortgage lenders across the country, employees have admitted that they do not spend any time verifying the accuracy of the foreclosure documents, and often use a “robo-signer” who looks at the materials for less than 30 seconds and signs up to 10,000 affadavits a month.  The lenders often just service the loans, without owning the title.  Private investment pools or even the government, in the form of Fannie Mae and Freddie Mac, often own the homes.  Sometimes the owner cannot be determined because of securitization and sloppy processes during the housing bubble, leading to foreclosures by servicers who cannot establish ownership.

Categories: Breaking News

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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