"GMAC has been conducting a strategic review of its business and evaluating options to address the challenges in its mortgage operation." The spokeswoman said GMAC wants to prepare itself to repay the U.S. government.

The key here is GMAC's strategy to get into the mortgage business. The mortgages held by GMAC are in very bad shape with no hope of getting better any time soon. The new management has no experience in either real estate or autos not sure what they know that will help the GM problem.
Alan is correct in his assessment, bankruptcy was the answer. My guess is that under the recently announced Treasury programs the Treasury will allow Fannie and Freddie to buy the mortgages from GMAC. If nay one thinks Fannie and Freddie will pay a real price is just stupid. My guess is GMAC will get 95 cents on the dollar. I would say full value but after the AIG debacle they may not be that brash.

It is a mistake to think businessmen are more immoral than politicians!
Keynes, 1937