When GMAC sends legal notice that you are in foreclosure even though you never missed a payment. It’s no problem (as long as you have one of the biggest newspapers in the country contact GMAC for you).
Every month since they bought their new home in July 2009, Daniel and Sarah Shepard have paid their mortgage on time.
So it was a bit confusing when a GMAC representative called their Lake in the Hills home Sept. 6.
“She said, ‘Will you be home in the next day or two? We have something we have to deliver about your house,'” Sarah Shepard recalled. “I said, ‘Are you serving me legal papers about my house?’ She said, ‘Yes ma’am, we are.'”
A few days later, there was a knock on the door. Daniel Shepard answered, and was handed a legal document that showed GMAC Mortgage LLC had filed a claim against the couple in McHenry County Circuit Court. …
Shocked, Shepard called GMAC. A GMAC representative told her not to worry, their house was not being foreclosed on. Shepard said GMAC could not explain what was going on, but assured her everything was fine.
The couple again checked their title, and again it showed their house was in foreclosure.
Shepard said she spoke with four GMAC representatives, but could get nowhere.
“Each time I call, I inform them they need to clear my title, and each time they inform me they’re working on it,” she said. …
The Problem Solver [From the Chicago Tribune] called GMAC and Chicago Title Insurance Co.
Jim Olecki, a spokesman for GMAC, said the Shepards were never in foreclosure. He said a processing error within GMAC made it look like the Shepards’ mortgage was paid off.
To fix the error, GMAC had to file a notice of rescission in circuit court, reversing the mistake.
“It’s very uncommon,” Olecki said. “It’s the first time I’ve ever seen it happening.”
The legal filing was apparently misinterpreted as a foreclosure by an underwriter, which led Chicago Title Insurance to make the notation on the Shepards’ commitment for title insurance.
Olecki said a GMAC representative would call Chicago Title Insurance and explain the mistake.
Later that day, Chicago Title Insurance fixed the error.