If you haven’t heard, last week, GMAC suspended foreclosure sales in 23 states, including Indiana. The leading theory (and probably accurate) is that the affidavits GMAC filed with the courts to get these foreclosure judgments were false – yes, folks, at least one GMAC employee has admitted, under oath, that he lied when he signed thousands of documents swearing to hundreds of courts (under penalty of perjury, no less) that he was telling the truth. This, of course, has us consumer attorneys all a-twitter (or at least a-blogging). Some Attorneys General are also getting more interested – the Attorneys General in California and Connecticut have “asked” GMAC to put a freeze on foreclosures in their states (and I’m sure GMAC will grant their wishes immediately – really). North Carolina has requested additional documentation from GMAC to see if further investigation is needed. Closer to home, Ohio’s Attorney General has asked its judges to make a “special review” of all GMAC foreclosure cases, and the Attorney General in Illinois has demanded a meeting with GMAC to ‘splain whether or not it violated Illinois consumer fraud laws. No word yet on whether Indiana’s Attorney General will join the fray.
So what? Well, if your Indiana home is in foreclosure, and GMAC was handling your payments, then things might slow down – at least for a little while. If GMAC filed a “Motion for Default Judgment” against you, pull it out and see if one “Jeffrey Stephan” signed the attached affidavit, and forward a copy to the Indiana Attorney General if he did. If a sheriff’s sale has been scheduled, check with the court to see if it has been put on hold. However, don’t count on GMAC’s snafu to stop the foreclosure permanently. Use this extra time to keep doing what you need to do: get help, get a modification, sell the house, meet with a housing counselor, consumer defense attorney and/or a bankruptcy attorney, and/or continue living in the house rent-free for a few extra months.