The Ohio Attorney General Richard Cordray is filing suit against GMAC for improper foreclosure filings, according to AP.
Legal challenges to the high-speed foreclosure process are piling up. Meanwhile, big banks are halting the process themselves.
GMAC, JP Morgan, and Bank of America have all halted foreclosures in 23 states, including Ohio.
Regulators in California and other states where foreclosure processes have not been halted — due to different legal processes — are pursuing similar legal challenges.
Slowing the foreclosure process could keep delinquent mortgage holders in their homes for months, delaying the economic damage and keeping the real estate market from resetting.