Hat tip reader Darby Shaw, via Detroit News:
GMAC Mortgage resumed foreclosures in 23 states Tuesday after it had halted practices earlier this month following an employee’s admission of approving thousands of foreclosure notices without reading the paperwork.
“As we review the affected files in the 23 judicial states and take any needed remediation, the foreclosure process continues,” said Gina Proia, a spokeswoman for GMAC Mortgage. The original freeze did not include Michigan.
Last week, the U.S. Treasury Department’s special inspector general confirmed it is looking into the practices of GMAC Mortgage, part of Detroit-based Ally Financial Inc., which is 56.3 percent owned by the federal government. The government has loaned $17.2 billion to Ally Financial.
GMAC said last week it has hired legal and accounting firms to review foreclosures in all 50 states. Bank of America Corp. also said Tuesday it has resumed foreclosures in all 50 states.