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ATTORNEY GENERAL OF COLORADO

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					              ATTORNEY GENERAL OF COLORADO
                                   John W. Suthers
                                   September 27, 2010


William B. Solomon, Esq.
General Counsel
Ally’ Financial, Inc.
200 Renaissance Center
P.O. Box 200
Detroit, Michigan 48265-2000

VIA OVERNIGHT DELIVERY

       Re: GMAC Foreclosures in Colorado

Dear Mr. Solomon:

        I have read with great interest recent stories identifying potential problems with
internal procedures utilized by GMAC Mortgage in initiating and completing
foreclosures. News articles, and GMAC’s response to those articles, have focused
exclusively on twenty-three states that employ a judicial foreclosure process.

        As you know, Colorado is not one of those states. Foreclosures in this state are
prosecuted through our Public Trustees, with our courts involved only for the lenders to
obtain an order of sale. While affidavits of the kind being questioned in those twenty-
three states are not used in Colorado, I believe that the same questions are relevant
here.

        In most, if not all, of the more than 1000 foreclosure actions initiated by GMAC
in Colorado just since January 1, 2010, local attorneys for GMAC represent in various
required documents that GMAC Mortgage, LLC is the “holder of the evidence of debt”
under Colorado law, and make further representations regarding the unpaid loan
balance, its delinquency, and the validity of the note and deed of trust. The fact that
GMAC is not required in most instances to produce the original promissory note and
deed of trust, or even the original indorsement or assignment where GMAC is not the
originating lender, only increases not lessens the importance of these
                                   —             —




representations. While these are not sworn affidavits of the kind at issue in other states,
the accuracy of these documents is essential for preserving the integrity of the
foreclosure process in Colorado.



        State Services Building 1525 Sherman Street7’ Floor Denver, Colorado 80203
                                             5
                            P ‘e3G 56’5” F 3;3 6—745
William B. Solomon, Esq.
September 27. 2010
Page 2

        I would like to arrange a meeting between GMAC and members of my
consumer protection staff to discuss these issues. Among other things. I would like to
hear an explanation of all new or existing procedures in place at GMAC designed to
ensure that fair and accurate representations are made when it pursues foreclosure
actions in Colorado. In particular, I would like to learn what steps are taken to insure
that GMAC is indeed the holder of the evidence of debt being foreclosed upon, that the
loan in question is in default, that efforts have been undertaken to mitigate the
foreclosure through loan modification, forbearance, or other steps, and that outstanding
loan balances are as represented.

      Prior to the time that we can meet and you can demonstrate that appropriate
procedures and safeguards are in place, I would hope that you will extend to Colorado
homeowners your direction to suspend evictions and REQ sales.

        Please contact either Deputy Attorney General Jan Michael Zavislan (303-866-
5183 orjan.zavis1ans1aw.co.us), or First Assistant Attorney General Andrew P.
McCallin (303-866-5134 or andrew.mccal1in(iistateco.us) at your earliest convenience
to arrange a time to meet.

                                           Sincerely,

                                          (EN,
                                              /1
                                           JFN W. SUTHERS
                                           o1orado Attorney General

				
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