GMAC has told brokers and agents to immediately stop evicting homeowners in 23 states. In a memo, the Ally Financial Inc. subsidiary cited “corrective action in connection with some foreclosures” that may need to be taken. Smells like some people got foreclosed on that shouldn’t have, though we’ve been hearing scattered reports about that for a while without the banks doing much, so why drastic action now? Have they uncovered something massive?

According to the document, everything from evictions to cash-for-key transactions are lockouts were to be halted, without exception. Sales of already foreclosed property are suspended. All closing dates will be extended by 30 days, and buys will be able to cancel their purchases and get their deposits back.

Here are the states where evictions are stopping:

Connecticut
Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin

Ally’s GMAC Mortgage Halts Home Foreclosures in 23 States [Bloomberg]

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