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Attorney General Richard Blumenthal demanded today that GMAC/Ally Finance Inc. halt all foreclosures in the state, saying the company has been filing defective foreclosure documents in Connecticut.
“The GMAC/Ally foreclosure steamroller should be stopped so the company can be held accountable," Blumenthal, who is running for the U.S. Senate, said in a statement. "“The bank’s apparent failure to follow basic legal procedure -- a potential fraud on the court -- is appalling and unacceptable."
Blumenthal said his office is investigating, but already has turned up some questionable documents. He said the investigation likely will involve the practices of other banks as well "because these failings involve much more than mere technicalities, as GMAC/Ally has claimed."
Blumenthal's action comes after Jeffery Stephan, a GMAC/Ally Financial employee, admitted not verifying the accuracy or properly notarizing thousands of foreclosure documents, Blumenthal said.