Ally halts some evictions in Illinois, 22 states

By Reuters
Posted Sep. 20, 2010 at 2:08 p.m.

GMAC Mortgage, a unit of Ally Financial Inc., is continuing with new residential foreclosures despite a report it had stopped them, a spokeswoman said Monday.

But some evictions have been suspended while the company reviews its internal procedures, the company said.

Bloomberg reported on Monday that GMAC told brokers and agents to stop evicting homeowners in 23 states, citing a two-page GMAC mortgage memo.

“This is not true,” Ally spokeswoman Gina Proia wrote in an email Monday afternoon. “In fact, all new residential foreclosures are continuing in the ordinary course of business with no interruption in our usual practice.”

GMAC had previously told some vendors “to suspend evictions” as it reviews a procedure relating to its required legal forms for foreclosures, Proia wrote. The company is also reviewing completed foreclosures in which the procedure was used.

“We are unable to comment on the specific merits of the challenge because some of them are in litigation,” Proia wrote.

But “a new process has already been developed and implemented so that though some existing foreclosures may experience delays while corrective action is taken, there will be no interruption in new foreclosures,” she said.

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