A recent defense class action lawsuit in Maryland resulted in the dismissal of hundreds, if not thousands, foreclosure cases initiated by GMAC Mortgage. GMAC’s ability to re-file the foreclosure documents remains intact.
Baltimore non-profit Civil Justice, Inc. and the University of Maryland School of Law Consumer Protection Clinic brought what they’re calling the first ever defense class action suit against the mortgage company in October, alleging wrongful foreclosure due to faulty foreclosure affidavits.
“We filed a defense class action lawsuit, meaning instead of filing affirmatively, we used the case as a defense for all those individuals being sued or foreclosed upon by GMAC,” defense attorney Tony DePastina told HousingWire.
DePastina, alongside partner Philip Robinson and head of the university Consumer Protection Clinic Peter Holland, defended the case on behalf of Kevin Matthews and “a class of similarly situated persons.” GMAC filed a foreclosure case against Matthews in March 2010.
Maryland is a quasi-judicial state with regard to foreclosures, meaning that a foreclosure will only go through the court if a case is filed. Not all foreclosures have a case filed.