GMAC Still Can’t Process Mortgages Properly
You’d think after it had become the poster child for robo-signing foreclosure fraud, at a time when it was facing a class action suit arising out of that fraud, and at a time when all servicers had been anxiously awaiting the result of the US Bank v. Ibanez suit in MA, GMAC would be very very careful about the way its purchase of mortgage notes interacted with its servicing department.
You’d be wrong. The Consumerist has the story of a guy whose local originator told him and his wife that GMAC would probably be buying the note when they refinanced back in November. But the day after GMAC actually completed that purchase, they started pestering him with claims he was delinquent on a payment he had made 11 days earlier.
This afternoon I answered my cell phone and heard a recorded message that GMAC was trying to reach me. Interested, because we have no relationship at all with GMAC at this time, I held on the line until a gentlemen spoke, asking me “Am I speaking with (my first and last name)?”
I confirmed that he was speaking to me and asked who he was, explaining that I have no relationship at all with GMAC. He responded by telling me he was calling about the property at my address. I reiterated that I have no relationship with GMAC and demanded that he explain what the purpose of the call was. He coldly stated that he was calling regarding a delinquency on a mortgage for the property at my address.
[snip]
After several calls with the originator, they were able to explain what happened. Apparently, GMAC indicated they wanted to buy the mortgage back in November, when we closed on it, but never actually purchased it (and I’m sure I’m not using the correct industry terminology here) until YESTERDAY, January 11th. The originator did receive my payment for the 1st but were unable to send it to GMAC until GMAC officially owned the note.
So, GMAC let my note sit with the originator for more than a month and a half before they actually purchased it. Then, one day after they took ownership, it was flagged in their computer as delinquent and they immediately called me about it.
Now, I’m actually really curious whether this simply reflects GMAC is so on top of collections that it really did make a call on the loan the day after they purchased the note. Or, as would be more damning, whether GMAC’s servicing department is still doing what led to all the robo-signing in the first place: putting loans into their servicing system before they have the legal basis to do so.
In any case, it suggests GMAC’s claims that they’ve reviewed all their processes and fixed any problems with them may be over-optimistic.
This kind of thing makes me never want to buy a house. It’s not worth the trouble.
I am going to sell an apartment to my tenant. Rather than go through a bank, I am instructing my pension fund to extend the loan to the buyers secured of course by mortgage. I think more and more people are going to start circumventing the banking system when selling to people they know or selling something that if repossessed will be easy to sell. Of course, you need capital to do this, but people of a certain age have accumulated that capital in their pension funds.
You can also use a real estate contract. That’s how I bought my old house.
At this point, I don’t think I’d trust any mortgage lender’s word on anything, including, but not limited to, ‘the’ and ‘one’.
Why GMAC would go immediately to a strong arm robo call instead of a “friendly reminder” also boggles my mind. When and if I buy again, I’ll at least have a list of banksters to avoid.
http://www.zerohedge.com/article/jp-morgan-told-judge-stop-paying-mortgage-become-eligible-loan-modification
nothing has changed. I still owe money I shouldn’t. I still can’t talk to a person without it being connected to my account and without them “trusting” the payoff. I still have to sue them to keep my house. Nothing has changed. They changed the name of the company and have been left out of most lists of banks violating laws. They must have a tremendously strong lobby in Washington. They were left out of the story right up to the point where they could no longer hide it, even as the US bailed them out. They were removed shortly after that, and they are not mentioned very often as one of the worst banks. Interesting to me, as to what is NOT being said. Every class action lawsuit that talked about these illegal fees has failed. The one I was involved in, ended when GMAC was bailed out and went bankrupt. It has not been resumed.
I think everyone expects that they will change their ways…but they have no reason that I can find to change it.
When wondering whether GMAC has thoroughly examined and fixed longstanding problems that lower profits at the cost of harm to consumers, let’s not forget where the first two letters of GMAC come from. At best, revising its thoroughly consumer dismissive processes are like turning an aircraft carrier on the Hudson River. Like its brethren, it still seems unsure that it has any need to do so.
Plus, it’s been through the Cerberus wringer since.
So it’s pretty much poison all around.
What bothers me most is that the originator, (or any subsequent mortgage holder) can sell the debt without approval of the debtor. I, for example, would be horrified to learn any debt I held had been sold to GMAC. I had a really bad experience with them in the past and I would probably sell property rather than allow them to be in any way involved in it.
I’m starting to think that maybe there is a lucrative new industry for clever lawyers, where for a fee they study the details of your mortgage and determine whether it’s one of those that has been bundled and re-sold so many times that nobody knows who is actually the legitimate holder of the paper anymore. Then you cease making payments, and leave the banks holding the bag. And God Bless America !
Wall Streeters might do that, but most homeowners depend on the underlying asset – their home – and wouldn’t willy nilly risk it in hopes of making money years down the road and sharing 30-40% of it with a lawyer.
“overly-optimistic” that’s funny ( sort of) I call it an “understatement” on Marcy’s part! ;^)
If anyone hasn’t put together the “conspiracy” that the American people are being attacked at all levels by the corporatocracy, then, good luck to US all.
Still haven’t figured out why they feel the need to destroy this engine of consumerism in the first place. Perhaps because America gave people all over the globe “hope” that they could be “free” too?
I always thought it reflective of the power of American projection when foreigners were so surprised at the seething poverty in New Orleans after Katrina kicked that ant’s nest over.
Also note that the NOOZ never addresses this foreclosure fraud…ever….anywhere. Well, maybe Hartmann sometimes
GMAC claims they have possession of my “wet ink” documents and can produce them on demand, so I must be the only person in America that they haven’t done anything stupid or funny with! Although my closing paperwork assigns it to MERS, they also claim that it was never given to them or sold to Wall Street.
So of course everything they did to this poor guy was completely above board! :)
I am very behind on these threads.
This is possibly mortgage servicing fraud. They are possibly trying to steal the house.
msfraud.org has lots of horror stories…problem with buying is you have no control over who buys or services your mortgage. No choice or control. They can take you to the 12th circle of hell and back and you have no control.