Gmac modification

[wannastay]

This site has provided me with tremendous amt. of information. However, we have not been successful and are hoping to get some detailed help by posting our story.

We are also trying to modify our mortgage with GMAC (previously with Homecomings). We have been trying since Mar. 2009, but they were always missing documents although we are certain we submitted everything complete. We were current until May. 2009, but stopped making payments since Jun. 2009 as my husband was laid off as of 01Jun09. We sent our modification pakage in July, and was denied due to insufficient income.

Our first mortgage with GMAC close to $3700 (P/I and T/I all included, 6.875% 30 YR fixed) and 2nd with WAMU about $115 interest only. 1st amt. about $500K and second about $35K. The accessed val. of the house per county is $447K.

With out combined bring home income of $6K monthly with the child care exp. of $1000 monthly, I can only say it is a miracle we managed to get by since Jul. 2007 until May. 2009.

Now with my husband laid off, my income and his unemployment ins. GROSS income is about $5500 a mnth. For our July application, we were denied due to insufficient income.

Now I tutor several kids and bring additional $2000. This is not documented of course although I will despoite the money made into our acct.

I am not sure with this additional income, whether they will approve our mod. if we applied again.

Please help me ideas with what to do for us to stay in our house. Thx.

[Moe Bedard]

Hello and let me see if I can guide you a little here.

Now with my husband laid off, my income and his unemployment ins. GROSS income is about $5500 a month. For our July application, we were denied due to insufficient income.

Was this the Obama plan? Many mortgage servicers can do almost anything they want to modify a loan and that includes dropping the rate down to 1-3% or reducing the principle. It looks like if they did either of these things, then you would be fine. But the reality is that I have really only seen interest rate reductions over the last couple years and I have seen 1-2% on 1st mortgages and even 0% on 2nds.

So, anything is possible.

Now I tutor several kids and bring additional $2000. This is not documented of course although I will despoite the money made into our acct.

I am not sure with this additional income, whether they will approve our mod. if we applied again.

I believe that this could help because it is being documented in your account and I have seen lenders take this into consideration. Will GMAC? I am not sure and you know the saying, if you don't ask, you don't get

Please help me ideas with what to do for us to stay in our house. Thx.

I know this seems very basic advice but the reality is that this is basic and you have to be tenacious and hopeful in your fight to win.

[wannastay]

Thank you, Moe. With $5500 G. Income, I could not understand why they would not modify. I was told when I called that they caculated 3.5% rate and 30% reduction of the principle and we were still DQ'ed. I asked why not lower the rate below 3.5%, but he just said there was no program that would qualify us for no matter what they did. We missed Jun, Jul, Aug payments. I was recommended for a sale, but we want to stay in our house.

Last time, we did not provide bank statements because it was not requested by GMAC. We are going to apply again with higher income of about $7 - $7.5K on the statement. Do you think they will say you make too much now to qualify?

We both had excellent credits of mid. 700's, and not sure what it would be now...

[Moe Bedard]

No problem.

I cant recall GMAC going down to the 2% range on a loan mod. Maybe they wont? I really hope they do for you. I think you should be fine and maybe get www.naca.com to help you or a another nonprofit.

Please keep us posted and have a good weekend!

[Fairlady]

I went to the NACA Save the DReam tour on Sunday and Monday (8/9-10) and unfortunately GMAC is in the same category as the FHA loans. Meaning they are nto able to help right now. I have been fighting since April this year and have not received any updates or solutions mainly because of havign an FHA loan. The good news is that there will be help available beginning 8/15. I think this applies to GMAC also. The FHA commisioner was at the tour and did nothing to hep other to listen to people's stories so that he could generate a report for the folks in Washington. Naca will not be able to help you currently an unfortunately they will not be upfront and tell you that. I have been waiting all these months only to find out at the tour that they can't offer solutions for FHA, VA or GMAC loans until they hear word from the Obama administration. You may notice after searching through the threads here that none or few if any of the success stories through NACA or directly through the lender have been FHA, VA or GMAC loans.
With that being said, I believe NACA is a great organization and you may still want to submit your documents to them so that they can't stop any auctions on your home. I just wish they would have been upfront with me in the beginning and told me that I would not see any solution soon until they got permissin from the government. I would have saved me some frustration and worrying. Hope everything works out for you.

[wannastay]

This is an update to our case. I have been getting many calls from the servicer. Just a couple of days ago, I received and answered the call from GMAC, our mortgage servicer. Of course, I was asked to pay. This time though was a bit different. They asked whether our income changed since the last mod. review (which was denied by GMAC due to non-sufficient income). I told him I had a 2nd job although my husband was still un-employeed. The total deposite last month was over 7K - this includes my full time job income, 2nd job income and my hub's unemployment. He then tells me that I may qualify for Obama's forebearance program. (Has anyone heard of Obama's forebearance prgram? I heard about the mod's and refi's under the MHA plan but not the forebearance....) I gave him the gross income of $7100.00 and explained me the following. I qualified under the plan. He said the program would be good for 5 months. My first payment would be a month from the date I got the call. (Aug. 25 thus. Sep. 25 is the date my payment should be in with them.). The amt. would be $2201.00 a month (exactly 31% of $7100). He also tells me that I need to resubmit the MHA application package again while on forebearance. While their review for mod. was undergoing and the forebearance period is up, they would not foreclose our house. (since Jun, we have not been making payments.). I told him that my income from 2n d job is cash based and no proof other than bankstatements are available, and his response was that I would still qualify under obaman plan which is contrary to what I have previously known. He later mentions during our conversation that this is sort of a trial for the mod. that may be coming later that we can continue bringing in the same income in the coming months and we have the capability.

I have done some calculations and found that with 7.1K income a month, at 2% interest rate, my payment under MHA plan would be just around $2200 a month (T/I included). I am assuming that this is why I qualified for the forebearance.

Now, I wonder if we should take this offer. it seems that we can at least buy time with this program even if we do not qualify for the mod. eventually.

I have a couple of questions now.
1. does MHA qualify people with income that cannot be proven with paystubs? will cash income deposited into the bank suffice?
2. should I take the offer? will it buy us more time? We want to stay but not at the current payment of $3700 a month. You can rent a very very good rental here (Bellevue, WA). $2200 would be a good payment though.

Thank you in advance for your advice.