Maine Homeowners Bring Class Action Lawsuit to Redress GMAC Foreclosure Abuses


Center for Responsible Lending
October 1, 2010

Five Maine residents filed a complaint today against GMAC Mortgage, LLC (GMAC) on behalf of themselves and a class of Maine homeowners, alleging that the company routinely and systematically files false certifications that it has a right to foreclose on Maine homeowners, and false affidavits when asking courts to enter foreclosure judgments. 

The homeowners complain that GMAC files these false documents knowing that the courts in Maine will rely on them in deciding whether foreclosures can go forward and in allowing GMAC to sell their homes. Depositions of GMAC employees revealed that they do not verify the truth of information necessary to give GMAC the right to foreclose when they sign these court documents and that these improper practices have been in place since at least 2004.

Because of GMAC’s unfair and deceptive practices, hundreds or possibly thousands of Maine homeowners have lost their homes to foreclosure based on judgments obtained through bogus affidavits, and have been improperly charged costs and attorneys fees.  Most of them have had no attorney to protect them.  One homeowner, Nicolle Bradbury, does have a pro bono lawyer to defend her foreclosure and her suit disclosed these flawed practices.  A court in Maine sanctioned GMAC for this, noting that "this case is not the first time that GMAC's high-volume and careless approach to affidavit signing has been exposed."

The Maine residents are represented by Andrea Bopp Stark from the Molleur Law Office in Biddeford, Maine; Thomas Cox, coordinator of Maine Attorneys Saving Homes in Portland; the National Consumer Law Center; and the Center for Responsible Lending.

For additional information contact Andrea Bopp Stark at 207-283-3777 or 978-518-0203,  Nina Simon at the Center for Responsible Lending 202-349-1879 or 202-821-2152, or Charles Delbaum at National Consumer Law Center  617-542-8010.

Related press inquiries can also be directed to CRL media staff: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org; or Charlene Crowell at (919) 313-8523 or charlene.crowell@responsiblelending.org.

###

About the Center for Responsible Lending

The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.