Ally has suspended all foreclosure and eviction actions in 23 states (not California) because  a single employee had signed tens of thousands of legal documents approving foreclosures throughout the nation without reviewing the necessary documents  and had done so without the presence of notary public, as required.

“[H]e did not know what information the file contained other than the borrower’s name, that he did not inspect the exhibits he was supposed to, and that the notary who supposedly witnessed his signings was not in the room. ”

This employee essentially falsified documents to push along foreclosures.

Now what is wrong with this picture?  The 4th largest home loan originator had no systems of checks and balances in place and permitted just one person to sign off on tens of thousands of foreclosures all over the country?  No one checked this single person’s  work?  Doesn’t this fact now taint the validity of the entire foreclosure process and not just the eviction process at this institution?  One person’s actions or inactions responsible for taking the homes of tens of thousands of homeowners.  It would certainly be interesting to see how many people were falsely foreclosed on by this employees actions.

The irony is that  GMAC is 56% owned by the government (you and me),  the same government which is pushing for many programs to keep people in their homes and avoid foreclosures.    This is just another indication of how complex this whole foreclosure crisis has become.