Judge gives OK to mortgage lender in Maine

Posted Dec. 11, 2010, at 4:06 p.m.

PORTLAND, Maine — A federal judge has allowed one of the nation’s largest mortgage lenders to resume foreclosure sales and evictions in Maine, but the company still faces a lawsuit saying it used fraudulent paperwork to illegally speed up cases.

Foreclosures handled by GMAC Mortgage Co. had been on hold for the past month. Several Maine homeowners sued in October seeking damages. They said they had foreclosures initiated against them by GMAC, and that the cases included paperwork that was not processed in compliance with state law.

The Portland Press Herald reports the plaintiffs also seek a court order to require GMAC to change its practices in foreclosure proceedings in Maine’s courts.