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. Continue reading “GMAC Residential Capital Declares Bankruptcy”