Foreclosures halted in 23 states (But not Virginia)

Evidence is piling up of a serious problem in foreclosure processes. Most recently, the nation’s fifth largest home loan servicing provider (GMAC Mortgage) has halted it’s homeowner evictions and lockouts on foreclosed properties. The problem could be systemic:

St. Petersburg defense attorney Matt Weidner, who is handling a case in which a GMAC affidavit was withdrawn last week, called the freeze “staggering.”

“I suspect they are recognizing they have a really big problem,” Weidner said. “I think they are afraid the foreclosure judgments may be voidable.”

If that’s the case, Weidner said it won’t be just GMAC redoing their foreclosure procedures.

“We’re not just talking about isolated incidents of problems with foreclosures, we’re talking systemic,” he said.

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