Alliance Trustee Ends GMAC Mortgage Servicing Deal

Law360, New York (April 21, 2009, 12:00 AM EDT) -- The trustee overseeing the Chapter 7 liquidation of failed mortgage lender Alliance Bancorp has reached a deal with GMAC Mortgage Inc. to terminate a loan servicing agreement, a move that will see nearly $1 million put into Alliance's liquidation fund if approved by the court.

In a motion filed Friday in the U.S. Bankruptcy Court for the District of Delaware, Tracy L. Klestadt, Alliance's permanent trustee, said the money coming into Alliance would be from retained funds GMAC Mortgage held under a mortgage servicing agreement reached...
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