GMAC loan mod process?? HELP!

[conbon70]

Hello
I have been struggling with my income being cut in half for the last 6 months.
I have been able to make my mortgage payments up until now by depleting my savings account but now I have no more savings to pull from.

I have recently faxed my mod docs to GMAC and have not been able to pay my June mortgage payment. They finally sent me a letter letting me know that they recieved my paperwork and will be contacting me within 45 days to let me know if I qualify for a work out program.

My question is.. should I contact them to ask what to do until then about my payment? I have $1000 now and my mortgage payment is $2000. They have not contacted me about being late as of yet. Should I send them the $1000 or wait? I am also worried that they will deny us since our income has dropped so much.

Could they deny me since our total liabilities are now more that what our current income is? I would rather default on our credit card payments and other payments in order to keep our home. Any advice would be greatly appreciated!!

thank you

[Evan Bedard]

Hi conbon70 welcome and thank you for joining!

I would suggest that you contact your lender every few days or so until your loan mod is actually being processed. You don't want to wait 45 days for them to just tell you they have nothing or need updated info.. You need to stay on top of GMAC because of the large volume of loans being processed. In regards to making half your payment you should contact them to see if that will be possible so they won't report you late. Keep us poated on your progress.

[Moe Bedard]

They most likely will not accept partial payments and holding on to that money may be your best bet. Just start saving what you can while you go through the process with the intention to have this money is case they require a good faith payment to complete the loan modification.

GMAC is tough to deal with and this process may take some time. So, please be prepared to have many weeks and possibly months of this uncertainty. Just keep on top of this as much as you can. Trust, BUT ALWAYS verify.

Please keep us posted on your progress and let us know if you have any more questions.

[conbon70]

Could they deny us since our total liabilities are now more that what our current income is? How do they decide if I qualify?
Our total gross monthly income now is $4460 and the total liabilities including the $2000 mortgage payment is $5670 My parents have pledge to help us out until my income is back by giving us $1000 a month. I know we can make this work if they would just help us with a lowering our payment. I am so worried!

[~Jess~]

Unfortunately, they can deny you. They most likely will not accept your parent's monthly donation as income. The Obama plan involves lowering your payment to 31% of your gross income, which would be around $1382, saving you a little over $600 a month, but you'd still be in the negative. There are other types of mods out there too, but unfortunately, any mod they offer you at this point will not get you out of the red. Are there any expenses you can cut back on? For example, getting rid of cell phones, cable, internet, preschool expenses, cut back on groceries, etc. If you make enough cuts, then you may have a chance! Good luck!

[MAXIE19]

Jess is right. They may not accept the monthly contribution from your parent but it does not hurt to try. The guidelines do allow you to rely on the income of others (presumably a family member) if you can show that the income has been used to support the mortgage. Have your parents provide you with a notarized statement indicating that they are willing to contribute the agreed amount indefinitely or until your finances improve. Submit that along with their most recent bank statements showing that they have enough funds in their account to make good on their promise. To make a better case, you may also want to submit at least two recent banking statements showing such regular and consistent deposits/contributions from your parents into your own account.

[conbon70]

thank you all for your advice. I feel so hopeless. This time last year we were doing really well. No problems ever paying bills.
I wonder if we should look into filling bankruptcy? We want to keep our home. Can anyone give me some advice on this option?