California AG To Ally/GMAC: Immediately Prove State Laws Are Being Observed Or Stop The Foreclosures Until You Can!

In Los Angeles, California, the Los Angeles Times reports:

• California ordered Ally Financial Inc. to prove it was complying with foreclosure laws in the state or stop seizing properties, a reaction to the lender's suspension of evictions in 23 other states because of botched foreclosure paperwork it filed with courts. The Detroit company, formerly known as GMAC, didn't suspend evictions in California because almost all foreclosures here by it and other lenders don't require a court order. Still, Atty. Gen Jerry Brown on Friday told Ally to halt foreclosures in the state unless it can prove it is observing state laws.(1)

For more, see California puts Ally Financial on notice over botched foreclosures (Atty. Gen. Jerry Brown orders the lender to halt foreclosure proceedings in the state unless it can prove it has followed state laws).

For the California AG press release, see Brown Directs Nation's Fourth Largest Home Lender to Suspend Foreclosures Until It Proves It Is Complying with the Law.

(1) Go here for the California AG's letter to Ally/GMAC:

• "The Office ofthe Attorney General writes to demand that Ally Financial, Inc. demonstrate immediately that it conducts foreclosures in compliance with California Civil Code, section 2923.5 or, if it cannot, halt all foreclosures in California until it can."