WEST PALM BEACH, FL (WFLX) - A leading home lender is temporarily suspending foreclosures in Florida and 22 other states.
GMAC making the announcement after discovering employees submitted affidavits containing information they did not personally verify.
In Florida, foreclosure motions must be backed by an affidavit from a witness who has reviewed the files and confirmed the lender actually owns the mortgage note.
But in a sworn deposition, a GMAC employee admitted signing about 10,000 foreclosure affidavits per month without personally verifying the documents.
Foreclosure defense attorney Melva Rozier says GMAC customers now facing foreclosure have a chance to save for their homes.
"What it means to the homeowner is that you'll stay in your house until such time as GMAC decides we're gonna fix this problem. And here is the redress: It means to get out and fight for your home in the meantime," said Foreclosure Defense Attorney Melva Rozier.
If you don't have the money to hire a private attorney, you can contact these organizations for help:
Rozier says less than five percent of all homeowners facing foreclosure actually fight it.