GMAC Mortgage has lifted its temporary suspension of foreclosure sales and evictions, a spokeswoman said, joining Bank of America Corp. in retreating from a freeze that sparked a nationwide crisis over major banks' mortgage practices.
GMAC, one of the largest servicers of U.S. residential loans, is still reviewing and modifying foreclosures that were poorly documented, but "as each case is reviewed and addressed, it moves forward," spokeswoman Gina Proia said.
The Ally Financial unit helped spark concerns of a nationwide problem last month, when it suspended evictions and post-foreclosure closings in 23 states after discovering widespread errors in its foreclosure procedures.
Bank of America, which also suspended foreclosure sales in all 50 states, said on Monday it was partially lifting its own freeze.
Proia would not say when exactly GMAC lifted its suspension, but said it does not plan another suspension at this point. The mortgage servicer expects the majority of foreclosure reviews in 23 states to be completed by the end of 2010, she said.
GMAC's decision was earlier reported by the Wall Street Journal.
© 2024 Thomson/Reuters. All rights reserved.