Ally Financial’s mortgage business is halting foreclosures in Connecticut and 22 other states because the company may need to take “corrective action” on some of the transactions, according to published reports.
The Wall Street Journal’s online news service says GMAC Mortgage, part of Ally, told brokers and agents to stop foreclosures in 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 and Wisconsin.
GMAC Mortgage will also suspend sales of homes that it’s already foreclosed on. The company will extend the closing date on these sales by 30 days. Buyers can cancel purchases and get their deposit back.
GMAC Mortgage said it may need to take “corrective action” on some foreclosures in the 23 states, according to a memo it sent to brokers and agents.
Bloomberg News reported the memo earlier on Monday. Jim Olecki, a spokesman at Ally, said the memo was accurate.
