The homeowner at the epicenter of the foreclosure documentation scandal has been granted a reprieve, at least temporarily.
Ally Financial‘s GMAC Mortgage on Monday moved to have its foreclosure case against a Maine woman dismissed, according to her lawyer, Tom Cox.
“For now she gets to keep her home,” he said. “In her case we pointed out the major defects that they had and I think they accepted that they weren’t going to win this one. So they figured they need to refile.”
The foreclosure case against Nicolle Bradbury has gained national since a deposition in the case of GMAC employee Jeffrey Stephan uncovered problems with the way affidavits and other court documents were executed by the company.
As a result, GMAC revamped its processes and stopped foreclosure sales and evictions in the 23 states where foreclosures are settled by a court while it reviewed the affidavits in those cases for potential inaccuracies. That set off a wave of foreclosure halts by other servicers, including Bank of America Corp. and JPMorgan Chase amid similar problems.
GMAC has been the foreclosure process after each file is reviewed, the company said last week. So far, no evidence of any “inappropriate foreclosures” has been found, GMAC said.
A call to GMAC seeking comment about Bradbury’s case was not returned as of press time.
