LOS ANGELES – California's attorney general wants GMAC Mortgage LLC to stop foreclosures in the state until it proves it is complying with a state law aimed at preventing foreclosures.
California Attorney General Jerry Brown said Friday that he directed Ally Financial Inc., which owns GMAC, to prove it is complying with a law that prohibits lenders from taking steps to foreclose on a home before determining if the borrower is eligible for a loan modification flexcheck cash advance.
This week, GMAC said it halted certain evictions and sales of foreclosed homes to correct a "potential issue" in its foreclosure process. The company has not specified the internal issue that prompted the moratorium.
Brown says the lender has continued its foreclosure operations in California.
