On September 16th, one of the nation’s largest mortgage lenders, GMAC Mortgage, announced an immediate suspension of its foreclosure proceedings in 23 states, including the suspension of any sales of homes already repossessed. GMAC employees have been completing foreclosures without reviewing each case, as well as failing to adequately notarize foreclosure documents. This means people may have lost their homes when they shouldn’t have, so consumers may be able to challenge a previous or present foreclosure filing.
- On September 29th, another major mortgage lender, JP Morgan, announced a similar suspension of its foreclosure proceedings for the same questionable foreclosure methods.
- On October 7th, a bill came before the President that would have mandated the notaries of foreclosure documents and basically make it more difficult for consumers to challenge foreclosure proceedings, but Obama argued the bill “could facilitate fraud” in foreclosure proceedings and refused to sign the bill, which was Obama’s 1st veto as President.
- On October 8th, Bank of America announced it would also impose an immediate suspension of its foreclosure proceedings across the nation.
- The Department of Justice has announced an investigation into allegations of fraud amid foreclosure filings. Attorney Generals from 40 states are also expected to launch a separate investigation, according to the AP.
- In August, the number of foreclosures hit a record high.