Ally (GMAC) Mortgage Halts Home Foreclosures in 23 States

My question is why? I have two hypothesises. The first is that GMAC realized that they don't even own the properties because the mortgage was sold off to another party when it was securitized. My second hypothesis is that Obama called them up and told them to stop foreclosing on houses until after the election or he would demand the $17 Billion government loan due in full.

Either way there is no more this story than first meets the eye.

GMAC Mortgage Halts Foreclosures

Ally Financial Inc.’s GMAC Mortgage unit told brokers and agents to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.

GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 and obtained by Bloomberg News. Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to the document, addressed to GMAC preferred agents.

The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.