UPDATE 1-GMAC lifts foreclosure freeze, review continues

* GMAC lifts suspension of evictions and foreclosure sales

* Joins Bank of America in retreat from freeze

NEW YORK, Oct 19 (BestGrowthStock) – GMAC Mortgage has lifted its
temporary suspension of foreclosure sales and evictions, a
spokeswoman said, joining Bank of America Corp (BAC.N: ) in
retreating from a freeze that sparked a nationwide crisis over
major banks’ mortgage practices.

GMAC, one of the largest servicers of U.S. residential
loans, is still reviewing and modifying foreclosures that were
poorly documented, but “as each case is reviewed and addressed,
it moves forward,” spokeswoman Gina Proia said.

The Ally Financial unit helped spark concerns of a
nationwide problem last month, when it suspended evictions and
post-foreclosure closings in 23 states after discovering
widespread errors in its foreclosure procedures.

Bank of America, which also suspended foreclosure sales in
all 50 states, said on Monday it was partially lifting its own
freeze. [ID:nN18274195]

Proia would not say when exactly GMAC lifted its
suspension, but said it does not plan another suspension at
this point. The mortgage servicer expects the majority of
foreclosure reviews in 23 states to be completed by the end of
2010, she said.

GMAC’s decision was first reported by the Wall Street
Journal on Monday.
(Reporting by Maria Aspan, editing by Gerald E. McCormick)

UPDATE 1-GMAC lifts foreclosure freeze, review continues