Do you have a mortgage with GMAC Mortgage? Did you know its owner, Residential Capital, filed a Chapter 11 bankruptcy? What does that mean for you?
If you are current on your mortgage and have no issues with GMAC Mortgage, its bankruptcy probably won’t affect you. GMAC Mortgage is conducting business as usual while it is in bankruptcy (just like Delta Airlines did), and borrowers may not be affected at all.
If you are behind on a mortgage to GMAC, they can still seek to collect or foreclose on the mortgage. What if you have to file a bankruptcy or are already in a bankruptcy? What happens when you and your lender have “dueling bankruptcies”? When GMAC Mortgage filed bankruptcy, it was protected from claims against them, just like an individual is protected against collection efforts after they file a bankruptcy. But especially in Chapter 13 cases, individuals may be able to modify or eliminate (“strip-off”) a second mortgage. Consumers may also have claims against GMAC Mortgage. Are such claims now prohibited?
Thanks to the National Association of Consumer Bankruptcy Attorneys (NACBA), they are not. NACBA went to the bankruptcy court in New York and negotiated a court order which allows consumers to continue efforts to strip-off liens, question the validity of a mortgage, object to a claim filed by GMAC Mortgage or assert claims and defenses against GMAC Mortgage in a foreclosure action. If you have questions about a loan with GMAC Mortgage, we’re here to help.