Loan Modification Forum - LoanSafe.org - View Single Post - Another GMAC mortgage....stop paying, or short sell??

marinah1208 · 11-12-2008, 09:39 AM

Hi everyone,
I am in a similar situation to Dennis66 in a thread below. We have not stopped paying our mortgage yet -- our house is not selling, and if we drop the price any more it will be a short sale.

We would love to stay in our home, but are afraid that if we stop paying in order to qualify for a loan mod, we may not qualify anyway, and will be stuck with bad credit and the same mortgage (and the same inability to afford it). GMAC loss mit told us that they couldn't help unless we stop paying, but that is a scary prospect in case they won't help us anyway!!

Should we stop paying in hopes of a loan mod? Or should we go for the short sale and rent a home until our credit is good enough to buy again?

I know this is a subjective question, but we just don't know the likelihood of getting a loan mod in our situation because our interest rate is already low.

(1st mortgage GMAC, $340 principal, 5.125 ARM that will reset in 2010, monthly payment $2492; 2nd with Chase, $60,000 principal)

What do you all think? Any input would be greatly appreciated.

11-12-2008, 09:39 AM	#1 (permalink)
marinah1208 Member Join Date: Nov 2008 Posts: 23 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Another GMAC mortgage....stop paying, or short sell?? Hi everyone, I am in a similar situation to Dennis66 in a thread below. We have not stopped paying our mortgage yet -- our house is not selling, and if we drop the price any more it will be a short sale. We would love to stay in our home, but are afraid that if we stop paying in order to qualify for a loan mod, we may not qualify anyway, and will be stuck with bad credit and the same mortgage (and the same inability to afford it). GMAC loss mit told us that they couldn't help unless we stop paying, but that is a scary prospect in case they won't help us anyway!! Should we stop paying in hopes of a loan mod? Or should we go for the short sale and rent a home until our credit is good enough to buy again? I know this is a subjective question, but we just don't know the likelihood of getting a loan mod in our situation because our interest rate is already low. (1st mortgage GMAC, $340 principal, 5.125 ARM that will reset in 2010, monthly payment $2492; 2nd with Chase, $60,000 principal) What do you all think? Any input would be greatly appreciated.