In a major ruling Friday, a coalition of nonprofit defense lawyers and consumer protection advocates in Maryland successfully got over 10,000 foreclosure cases managed by GMAC Mortgage tossed out, because affidavits in the cases were signed by Jeffrey Stephan, the infamous GMAC “robo-signer” who attested to the authenticity of foreclosure documents without any knowledge about them, as well as signing other false statements.
But but but…. the banks have all sputtered, this is just paperwork and it doesn’t really impact anything. It won’t stop us. We just had to do a little internal review and “resubmit” documents where former ones were “incorrect” (a fancy word for PERJURED), right?
Uh, maybe not. Peter Holland of the University of Maryland School of Law, decided to stop lecturing and start doing. He got his class involved in actually suing instead of standing up and pontificating.
And Friday, he won.
GMAC “agreed” to dismiss every pending suit that had a robosigned affidavit in it. That’s about 10,000 of them. Sure, they can come back and file them again, but this time they’re going to have to use real documents, and they’re also going to have to prove up the debt.
I don’t know. But what I do know is that this is exactly what should have happened immediately – every one of those cases should have been immediately tossed. Then, the State AG should have brought criminal perjury charges. And finally, if under State Law the security interest has been lost, then the real party at interest (once we figure out who it is!) should have to pursue their claims as an unsecured creditor.
Only the first part of this has happened, of course, but it’s a start – and with some luck, now we’ll see the other two pieces fall into place.