GMAC Residential Capital Declares Bankruptcy

As we have discussed in January 2012 when it was but a rumor (see here), GMAC is filing a bankruptcy under Residential Capital.  Dan Edstrom writes:

GMAC Residential Capital Declares Bankruptcy

By Daniel Edstrom
DTC Systems, Inc.

According to Residential Funding Corporation, GMAC was one of the largest entities securitizing loans in 2000.  This bankruptcy probably has an impact on nearly every single GMAC based loan or loan that was securitized by GMAC.  Many of the GMAC deals pledged the loans to the trusts but never actually perfected the transfer.  This could mean that your “lender”, “creditor” or “owner” of these loans is one of the many related entities of Residential Capital (RESCAP) – which may be a problem because they have probably been paid in full.  Many of these entities had a security interest in the money advanced to fund the loans, even though they were not the named lender.  Many of these entities were required and obligated to make payments on the borrowers loans – and they did in fact make payments.  Many of these entities had guarantee agreements with other parties (such as servicers) to reimburse them for payments of principal and interest made on borrowers loans.

Here is the list of related entities RESCAP is attempting to consolidate into one bankruptcy:

  • ditech, LLC
  • DOA Holding Properties, LLC
  • DOA Properties IX (Lots-Other), LLC
  • EPRE LLC Equity Investment I, LLC
  • ETS of Virginia, Inc.
  • ETS of Washington, Inc.
  • Executive Trustee Services LLC
  • GMAC – RFC Holding Company, LLC
  • GMAC Model Home Finance I, LLC
  • GMAC Mortgage USA Corporation
  • GMAC Mortgage, LLC
  • GMAC Residential Holding Company, LLC
  • GMAC RH Settlement Service, LLC
  • GMACM Borrower LLC
  • GMACM REO LLC
  • GMACR Mortgage Products, LLC
  • HFN REO SUB II, LLC
  • Home Connects Lending Services, LLC
  • Homecomings Financial Real Estate Holdings, LLC
  • Homecomings Financial, LLC
  • Ladue Associates, Inc.
  • Passive Asset Transactions, LLC
  • PATI A, LLC PATI B, LLC
  • PATI Real Estate Holdings, LLC
  • RAHI A, LLC
  • RAHI B, LLC
  • RAHI Real Estate Holdings, LLC
  • RCSFJV2004, LLC
  • Residential Accredit Loans, Inc.
  • Residential Asset Mortgage Products, Inc.
  • Residential Asset Securities Corporation
  • Residential Capital, LLC
  • Residential Consumer Services of Alabama, LLC
  • Residential Consumer Services of Ohio, LLC
  • Residential Consumer Services of Texas, LLC
  • Residential Consumer Services, LLC
  • Residential Funding Company, LLC
  • Residential Funding Mortgage Exchange, LLC
  • Residential Funding Mortgage Securities I, Inc.
  • Residential Funding Mortgage Securities II, Inc.
  • Residential Funding Real Estate Holdings, LLC
  • Residential Mortgage Real Estate Holdings, LLC
  • RFC – GSAP Servicer Advance, LLC
  • RFC Asset Holdings II, LLC
  • RFC Asset Management, LLC RFC
  • Borrower LLC
  • RFC Construction Funding, LLC
  • RFC REO LLC
  • RFC SFJV-2002, LLC

(Beth again:)Here’s another interesting snippet from Mortgage News Daily, regarding Ally Bank (dba GMAC Bank) writing to its customers in warehouse lending and banking, saying that it was NOT part of the bankruptcy:

The GMAC/ResCap bankruptcy has long been anticipated – heck, even this commentary has been mentioning it for months. Clients received this note: “GMAC Residential Capital, LLC (ResCap) announced they have filed for bankruptcy protection. Ally Bank (dba GMAC Bank) is a separate legal entity from ResCap and operates independently of ResCap. Business Lending is an operating division of Ally Bank consisting of Warehouse Banking, Correspondent Lending and Wholesale Lending. The decisions made by ResCap do not impact ongoing operations of Ally Bank’s Business Lending Division. We would like to reassure all of our clients that your business relationship with Ally Bank will not be impacted by these changes. Ally remains an active participant in the Correspondent and Wholesale lending channels, and will continue to honor its commitments and purchase and fund those loans. Ally Bank continues to maintain lending relationships and continues to provide warehouse financing to those customers. In addition, Ally Bank is a direct seller to FNMA and FHLMC and maintains a servicing portfolio of both agency and non-agency loans.”

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8 thoughts on “GMAC Residential Capital Declares Bankruptcy

  1. How do I get information on a property that has been vacant and is owned by Rahi Real Estate Holdings, LLC?
    My client would like to purchase the property however we have been trying to track down exactly how we can save this and the neighborhood the property is in. It has been vacant for two years now.

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    1. Is there a property management company sign anywhere on the property? Have you tried contacting RAHI’s bankruptcy attorneys? Here is a bankruptcy filing from RAHI that lists some of its officers

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  2. hello there and thanks on your info ? I’ve definitely picked up anything new from right here. I did however expertise a few technical issues using this site, as I experienced to reload the website a lot of occasions previous to I could get it to load properly. I were brooding about in case your hosting is OK? Not that I’m complaining, however sluggish loading cases times will very frequently have an effect on your placement in google and can damage your high quality score if advertising and marketing with Adwords. Well I’m including this RSS to my e-mail and can look out for a lot more of your respective fascinating content. Make sure you update this once more soon..

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  3. Good Afternoon Ms. Findsen: Thanks for a terrific website enlightening both lay and non-lay individuals regarding homeowner, mortgagor and mortgagee issues…….

    As to the RESCAP mess…….

    In plain terms, suppose if an indivdual has a 2nd position (home equity) loan with GMAC, of course, secured by the property, which may or may not have been secured back to back to GMAC from a 1st position lender to GMAC. If as result of GMAC’s filing of Chapter 11 (whether or not added into the overall CH11 filling by RESCAP), suppose the judge/trustee cannot find a buyer for the portfolio that includes this GMAC 2nd mortgage, and moves to discharge the debt. In this situation, is the borrower on this 2nd mortgage still obligated to payoff this potentially discharged loan? Or does the loan move to settled position, thus any secuity or lien position becomes discharged. Further, if this outcome is true, then would the borrower would be liable for FIT on the discharged prinicpal as “realized income”?

    Thanks………………….

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  4. Hello. No comprende legaleze or financeze, just want to know if I should attept to refi now with another company. What advise can you give on a GMAC home loan?

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  5. what happenes to the home oweners that morgage through gmacif the judge discharges all debt can they forclose on the home oweners if so this is not right

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