GMAC reneges on "approved" modification after 3 trial paymentsThis

[twinsfan]

This is my worst nightmare. I originally qualified for the HAMP (Obama) program in May 2009. Sent in ALL the paperwork and was told I qualified. My 3 trial payments were made in June, July and August. I've called at least a dozen times to find out where my final loan documents are, and have been told repeatedly that I have done everything I need to do; all I need to do now is sign the final loan mod documents and return. Today I found out that the US Treasury Department declined my permanent modification. The GMAC rep told me that neither he nor his supervisor have seen the Treasury Dept decline a modification after the trail payments were made successfully. I was told the Treasury Dept declined it sometime over the past few days due to "program updates" although I was unable to get a specific reason.

This is so wrong! I spent the past 4 months rearranging my personal finances based on what I was told by GMAC, that the loan mod was a "done deal." In fact, I have recorded many of the calls that I've had with GMAC confirming everything I'm saying.

GMAC has told me they will call me back within 24 hours with an explanation. They admit that they have mislead me into believing that the loan mod was a "done deal" when in fact it was not.

If you are reading this and this same scenario is happening to you please reply. This will become a class action in no time.

[DICEMAN]

Twinsfan,
Your story is identical to mine, I too started with GMAC in March, got approved for 3-month trial starting 6/1. After my 3rd trial payment on 8/1 I waited patiently for my FedEx package with the final deal. After not getting it by 8/15 (and my next payment coming due), I contacted GMAC and was told that I was approved on 7/30/09, final paperwork pending. I was instructed that if final paperwork was not received by 9/1, to just send my next trial payment. Well, this is what I did. After still not getting anything via FedEx, another call to GMAC was made, this time was told I was approved, but the 4th trial payment screwed up the numbers, and new paper work would have to be drawn up. Was told that final deal would go out 9/15. After not hearing anything by 9/17, called GMAC again, was told that I was denied under MHA, but I am under review for "Traditional Modification". After asking, I was informed that the reason for denial was that my debt/income ration was already under 31%!!!! Are you kidding me!!!!!! If that were the case none of this nightmare would ever have been initiated!!! Clearly a mistake was made I said to them, and they agreed and said to re-enter the initial paperwork!!!!!!! Are you kidding me!!!!! I asked why the "Analyst" couldn't just review the paperwork they already had for 6 months, no reply to that. I asked how was I approved on 7/30, no reply to that. I asked how I was even entered into the initial trial period with a 31% ratio, no reply to that! At this point it is very clear they are purposely delayin things! But why? Does it have something to do with the most recent Freddie Mac survey putting interest rates at 5.04%? This is considerably lower than the 6.5% I currently have, and after that 5 year drop under the mod, it would return to only 5.04%? Is there a large increase in rates on the horizon? Someone w/ some advice please...........

[calgirl67]

Originally Posted by twinsfan

This is my worst nightmare. I originally qualified for the HAMP (Obama) program in May 2009. Sent in ALL the paperwork and was told I qualified. My 3 trial payments were made in June, July and August. I've called at least a dozen times to find out where my final loan documents are, and have been told repeatedly that I have done everything I need to do; all I need to do now is sign the final loan mod documents and return. Today I found out that the US Treasury Department declined my permanent modification. The GMAC rep told me that neither he nor his supervisor have seen the Treasury Dept decline a modification after the trail payments were made successfully. I was told the Treasury Dept declined it sometime over the past few days due to "program updates" although I was unable to get a specific reason.

This is so wrong! I spent the past 4 months rearranging my personal finances based on what I was told by GMAC, that the loan mod was a "done deal." In fact, I have recorded many of the calls that I've had with GMAC confirming everything I'm saying.

GMAC has told me they will call me back within 24 hours with an explanation. They admit that they have mislead me into believing that the loan mod was a "done deal" when in fact it was not.

If you are reading this and this same scenario is happening to you please reply. This will become a class action in no time.

That excuse about the US Treasure denying your mod is total BS. The US Treasury does not approve or deny mods, it just sets guidelines for these creep banks to follow.

Don't take that for an answer. Keep calling them. Send in a QWR - a Qualified Written Request, get a mortgage audit done. Push them into modifying your loan.

[heidi79]

It seems like these denials are happening to a lot of people after the 3 months. So far on here I see only one fortunate person who has gotten a final modifcation after the trial.

I'm assuming those 3 trial payments have got a lot of money flowing into the banks! People are just sick and tired! We don't care what program it is or what it's called, LOWER PEOPLE'S PAYMENTS enough to make a true difference in or financial situation and maybe then we can start to recover!

If the 3 month payment plan was low enough for you, tell them that you can't pay more that that amount with escrows. It's common sense! If the trial payments were manageable, they should find a way to lower them enough to get you there.

They have the power to do so many things for everyone and just choose not to do it.

[klarsson]

Same here. After 9 months of trying for a loan mod, I put the house up for sale and got an offer. When the bank received the SS offer, they offered me a loan mod. They are asking for 3 months of payments that are more than my original payment and no paperwork. I call every 2 - 3 days: they sent it FED EX, they mailed it, no they didn't mail it, they will mail it. I am so fed up. Worse yet, I paid for a Loan Mod company to help. USA Home Relief...more like Home Theft. More of the same....
Any suggestions on how to get things moving with GMAC, we are in Northern California and $100,000 under.

[getmeouttahere]

We are on our 3rd month and I believe you. We are with WF and I know they are scheming to get more money from us. I tell you this, if they disapprove us after the 4th month or final month, they can take this house and shove it. We decided from the very get go that this house is not worth keeping. We bought it for 370k, only worth 190k now. They have us on 4 mo trial mod and yet they keep calling us every other day, even on weekends to tell us we did not pay! We have to keep explaining to them we are on mod, but I think they are just doing this so they can get more money from us. Well, they won't! So sorry and if they will keep giving us a hard time they can go ahead and take this house for all I care.

This house bought brand new and yet it is falling apart right our own very eye, the paints falls off, the wood they used is fake, flooding in the yard and the community is so unfriendly! Who want to stay here?!?

If WF will keep giving us a hard time, we will give it up. In the beginning, we wanted to live in a quiet area, away from the city and now we are having second thoughts. It's not worth it!!!

[sammyt74dp]

Heres the latest...All banks, mainly Wells Fargo (who started this scheme) are using the Trial Payment as an way to simply get more more money and have no intentions of modifying your loan permanently, it's just to recoup some of their lost back payments and give false hope. It's happening to EVERYBODY, including I. There is no 4th trial payment, only 3 are required. This is an outright crime in my opinion.

[DICEMAN]

Originally Posted by sammyt74dp

Heres the latest...All banks, mainly Wells Fargo (who started this scheme) are using the Trial Payment as an way to simply get more more money and have no intentions of modifying your loan permanently, it's just to recoup some of their lost back payments and give false hope. It's happening to EVERYBODY, including I. There is no 4th trial payment, only 3 are required. This is an outright crime in my opinion.

Unfortunately I think you are right......GMAC has never intended to modify my loan, only stringing me along to AT LEAST collect my modified payment, rather than nothing. First they told me I was approved (3 times), then I was denied because I made too much money. Now they are saying I don't make enough money. The one question that I would like answered (they ignore it when I ask) is why was I approved for the 3 month trial to begin with. I submitted my initial paperwork in March, it would take 15 minutes to look at the numbers and figure out if I make too little or too much money. Can someone offer me some advice, I am getting desperate................

[grullagirl]

This is beyond ridiculous and in my opinion criminal. The American people need to stand up to this manipulation out right greed. I hope something happens today with the conversation between Loansafe and BofA. GMAC, Chase, and the rest of the crooks next. I will do all I can to help.

[BadBobMo]

The lenders/services cried to Treasury Secretary Timmy Geithner and they made a revision to HAMP, they now can take up to 5 months to get all your paper work together.
"Self Cure" look you might find a gold mine then they won't have to help you!

[twinsfan]

Update:

Today I spent an hour on the phone with a team leader in GMAC's loss mitigation department. GMAC is admitting they made a mistake when they originally approved us for the HAMP program back in May 09 - they now say we should have never qualified. In short, we did qualify because our housing payment ratio exceeds 31%. However, after lowering the interest to 2% and extending the term to 40 years our payment ratio still exceeds 31%. The next thing they do to get the payment down to 31% is forbear principal but we do not qualify for that option. I'm not totally clear why they cannot forbear principal for us. Because they cannot get our payment ratio down to 31% they tell us we DO NOT qualify for the HAMP program. We find this out after over 4 months of believing our loan was being modified under HAMP. We made 4 trial payments when we were originally told there would be only 3 required. We totally reorganized our financial obligations over the past 4 months because we anticipated our mortgage payment dropping substantially. Basically, we took on new debt to refinance old debt at lower rates, but the newer debt comes at shorter terms, thus higher payments. We did all this based on the assurances from GMAC that the modification was a "done deal" we only needed to make our trial payments on time. Unlike 4 months ago, without the HAMP program we are now insolvent, actually finding ourselves in a worse financial position than when we started the trial program with GMAC. They have told us we are the "only one" that his has happened to, and they are sorry but there is nothing they are willing to do to help us to get HAMP. Before we started the GMAC trial plan we had NEVER been late on our mortgage because we liquidated savings and all our retirement to stay afloat. Now we are going to be facing insolvency and foreclosure because GMAC flat out lied to us about the modification. We also just received a collection notice saying we are past due over $10K because our trial payments were less than our contractual payment.

I'm currently discussing our situation with an attorney.

[twinsfan]

Originally Posted by DICEMAN

Twinsfan,
Your story is identical to mine, I too started with GMAC in March, got approved for 3-month trial starting 6/1. After my 3rd trial payment on 8/1 I waited patiently for my FedEx package with the final deal. After not getting it by 8/15 (and my next payment coming due), I contacted GMAC and was told that I was approved on 7/30/09, final paperwork pending. I was instructed that if final paperwork was not received by 9/1, to just send my next trial payment. Well, this is what I did. After still not getting anything via FedEx, another call to GMAC was made, this time was told I was approved, but the 4th trial payment screwed up the numbers, and new paper work would have to be drawn up. Was told that final deal would go out 9/15. After not hearing anything by 9/17, called GMAC again, was told that I was denied under MHA, but I am under review for "Traditional Modification". After asking, I was informed that the reason for denial was that my debt/income ration was already under 31%!!!! Are you kidding me!!!!!! If that were the case none of this nightmare would ever have been initiated!!! Clearly a mistake was made I said to them, and they agreed and said to re-enter the initial paperwork!!!!!!! Are you kidding me!!!!! I asked why the "Analyst" couldn't just review the paperwork they already had for 6 months, no reply to that. I asked how was I approved on 7/30, no reply to that. I asked how I was even entered into the initial trial period with a 31% ratio, no reply to that! At this point it is very clear they are purposely delayin things! But why? Does it have something to do with the most recent Freddie Mac survey putting interest rates at 5.04%? This is considerably lower than the 6.5% I currently have, and after that 5 year drop under the mod, it would return to only 5.04%? Is there a large increase in rates on the horizon? Someone w/ some advice please...........

Diceman, isn't it interesting they are telling me I'm declined because they can't get my payment ratio low enough and they are telling you that your payment ratio is too low? Without a doubt, we are not the only ones. I don't see why this doesn't turn into a class action.

[DICEMAN]

Originally Posted by twinsfan

Diceman, isn't it interesting they are telling me I'm declined because they can't get my payment ratio low enough and they are telling you that your payment ratio is too low? Without a doubt, we are not the only ones. I don't see why this doesn't turn into a class action.

Twinfan I am ready to EXPLODE!!!! First GMAC told me that I was denied because my ratio was already at 31%, then a few days later it was because we could not afford the modified payment?! This is after we were told we were approved on 3 different phone calls! They still won't or can't explain how I was even accepted into the trial plan, and how they came up with the trial payment that suddenly I cannot afford (after paying it for 4 months!!!!!!!! I don't know where to turn..........

[twinsfan]

Originally Posted by DICEMAN

Twinfan I am ready to EXPLODE!!!! First GMAC told me that I was denied because my ratio was already at 31%, then a few days later it was because we could not afford the modified payment?! This is after we were told we were approved on 3 different phone calls! They still won't or can't explain how I was even accepted into the trial plan, and how they came up with the trial payment that suddenly I cannot afford (after paying it for 4 months!!!!!!!! I don't know where to turn..........

Record yours calls. Document every call. Make copies of everything. We can get all this stuff through a subpoena after we sue but to get an attorney interested in taking up our cause they will want to see how solid our case is. If anyone out there knows of an attorney that wants a class action case the complainants are forming.

[DICEMAN]

Twinsfan,

Let me know what your attorney has to say about the situation (being yours is identical to mine in every way). I consulted with one the other day, he said here in PA there is nothing he can do until the very end of Foreclosure proceeding. Then, maybe at that point, could force GMAC into modification in the courts. Unfortunately at that point if he can't I'll have no other options but to walk away, and that is NOT what I want. All I want is for GMAC to admit that I meet the guidelines and modify me!

[zeeya31]

Diceman,
I can relate, this story sounds identical to what GMAC has done to my wife and I. The old bait and switch, make payments, no package! After spending time on this forum and recently joining, I know now that we were not a special case. Everything you guys have talked about on this thread sounds just like our case with GMAC. We had to resubmitt and they told us we were denied for the goverment work out, but we were approved for the standard tradational workout, but I do not trust them. I have asked for a confirmation letter, but have not received anything yet. (supposed to fax to my work fax number a couple of days ago) I am currently in the last 11 months of a Chapter 13, so if I can get through the last 11 months maybe I can get away from the GMAC morons by doing a refinance at my local Credit Union. Information is a powerful tool and if anyone knows of a class action please let me know as my wife and I would like to participate. Good Luck

[DICEMAN]

Originally Posted by zeeya31

Diceman,
I can relate, this story sounds identical to what GMAC has done to my wife and I. The old bait and switch, make payments, no package! After spending time on this forum and recently joining, I know now that we were not a special case. Everything you guys have talked about on this thread sounds just like our case with GMAC. We had to resubmitt and they told us we were denied for the goverment work out, but we were approved for the standard tradational workout, but I do not trust them. I have asked for a confirmation letter, but have not received anything yet. (supposed to fax to my work fax number a couple of days ago) I am currently in the last 11 months of a Chapter 13, so if I can get through the last 11 months maybe I can get away from the GMAC morons by doing a refinance at my local Credit Union. Information is a powerful tool and if anyone knows of a class action please let me know as my wife and I would like to participate. Good Luck

Thanks for the reply, apparently this is happening to everybody. The problem I am having is I do fall in the guidelines, but they are looking at my paperwork working to deny, rather than comply. I know that I can re-submit paperwork to disprove them, but then they will try to make me go thru the 3 month trial again. This will only put me further behind, and give me no confidence that they will ever modify me.

[twinsfan]

Update: Today we were told our home was approved for foreclosure! We are only behind on our payments because we made the trial payments which were less than our contractual payment. If GMAC would have followed through on our loan mod after the 3rd trial payment we'd be current on our loan and modified. As it is, they are now foreclosing on our home.

[DICEMAN]

Originally Posted by twinsfan

Update: Today we were told our home was approved for foreclosure! We are only behind on our payments because we made the trial payments which were less than our contractual payment. If GMAC would have followed through on our loan mod after the 3rd trial payment we'd be current on our loan and modified. As it is, they are now foreclosing on our home.

It's going down the same way for me, but I went back over my initial paperwork and found that they were calculating my gross and/or net income incorrectly. Thus, making it seem like I could not afford the workout. I resubmitted updated paperwork proving them wrong!!! I suggest you do the same before you throw in the towel. They will manipulate the numbers in their favor!!!

[twinsfan]

Originally Posted by DICEMAN

It's going down the same way for me, but I went back over my initial paperwork and found that they were calculating my gross and/or net income incorrectly. Thus, making it seem like I could not afford the workout. I resubmitted updated paperwork proving them wrong!!! I suggest you do the same before you throw in the towel. They will manipulate the numbers in their favor!!!

I did the exact same thing last week. They miscalculated our debt and I was told the new information would probably allow us to get requalified. In the interim we have been told they are starting foreclosure.

[DICEMAN]

Twinsfan,

Are you going to go into the 3 month trial again? I spoke to GMAC today, and got some more info. I went over the numbers from my original paperwork, they calculated my gross income incorrectly. After correcting it and pointing out my real gross income, my modified payment (after 2%-40 yrs) comes to 31.49%, and that is a FAIL. They will fail you for half a percent and won't forgive principal to make up the difference, which would have been $25 a month on the payment. Ofcourse, those were the numbers from the original doc's, I have new stuff to submit that will definitely fall in line. But I was hoping I could avoid having to resubmit. Here is the question for both of us: If we go into the trial again, what are they gonna fail us for in 3 months?

[zeeya31]

Alright guys here is an update on my situation, after calling the number for the GMAC executive offices (I found on this site) I have been communicating with an advocacy person. She has told me that our mod. has been approved, but she would not give me the terms. I told her that I did not put much stock in their word I asked her to fax me a letter stating the foreclosure was postponed, and she said she would do that. Well, after 6 days and the original foreclosure date looming, I kept calling everyday (she gave me her direct number) and finally she called me back and told me they were having trouble faxing out of their system (Right!!!!!!!) I told her to email it to me this was as of last Friday and she took my work email address, but it did not show up until yesterday, so I now have a confirmation on the mod with a postponement of the foreclosure. Not sure of the terms, but she said we should have the workout package by November 1st, I will call every other day to make sure nothing has changed. I got more information and more done working with the advocacy group, and the people are a lot more intelligent and informative, call them now.

[DICEMAN]

Originally Posted by zeeya31

Alright guys here is an update on my situation, after calling the number for the GMAC executive offices (I found on this site) I have been communicating with an advocacy person. She has told me that our mod. has been approved, but she would not give me the terms. I told her that I did not put much stock in their word I asked her to fax me a letter stating the foreclosure was postponed, and she said she would do that. Well, after 6 days and the original foreclosure date looming, I kept calling everyday (she gave me her direct number) and finally she called me back and told me they were having trouble faxing out of their system (Right!!!!!!!) I told her to email it to me this was as of last Friday and she took my work email address, but it did not show up until yesterday, so I now have a confirmation on the mod with a postponement of the foreclosure. Not sure of the terms, but she said we should have the workout package by November 1st, I will call every other day to make sure nothing has changed. I got more information and more done working with the advocacy group, and the people are a lot more intelligent and informative, call them now.

Just curious, what kind of payment have you been making on your mortgage? The reason I ask is that it seems all banks (including) GMAC are using these trial periods as a way to string people along and get them to pay SOMETHING. I believe that they know right off the bat that they will never modify certain loans, and if they revealed that then people would just stop paying all together. This explains why so many people are approved for the trial even though there numbers are doomed for failure. I hope your situation is diiferent!

[jieen1506]

Originally Posted by twinsfan

Update:

Today I spent an hour on the phone with a team leader in GMAC's loss mitigation department. GMAC is admitting they made a mistake when they originally approved us for the HAMP program back in May 09 - they now say we should have never qualified. In short, we did qualify because our housing payment ratio exceeds 31%. However, after lowering the interest to 2% and extending the term to 40 years our payment ratio still exceeds 31%. The next thing they do to get the payment down to 31% is forbear principal but we do not qualify for that option. I'm not totally clear why they cannot forbear principal for us. Because they cannot get our payment ratio down to 31% they tell us we DO NOT qualify for the HAMP program. We find this out after over 4 months of believing our loan was being modified under HAMP. We made 4 trial payments when we were originally told there would be only 3 required. We totally reorganized our financial obligations over the past 4 months because we anticipated our mortgage payment dropping substantially. Basically, we took on new debt to refinance old debt at lower rates, but the newer debt comes at shorter terms, thus higher payments. We did all this based on the assurances from GMAC that the modification was a "done deal" we only needed to make our trial payments on time. Unlike 4 months ago, without the HAMP program we are now insolvent, actually finding ourselves in a worse financial position than when we started the trial program with GMAC. They have told us we are the "only one" that his has happened to, and they are sorry but there is nothing they are willing to do to help us to get HAMP. Before we started the GMAC trial plan we had NEVER been late on our mortgage because we liquidated savings and all our retirement to stay afloat. Now we are going to be facing insolvency and foreclosure because GMAC flat out lied to us about the modification. We also just received a collection notice saying we are past due over $10K because our trial payments were less than our contractual payment.

I'm currently discussing our situation with an attorney.

It is a TERRIBLE story. You did what you was told to pay trial payment. After 3 months, they told you you were not approved for permanent modification and GMAC is going to foreclose your house! Is my understanding correct?

I just got approved for 3 month trial payment and I just sent out the Work Out Plan today. I never miss one payment so far. When I call GMAC last Thursday, I was told after 3 month trial payment, if I wouldn't be finally approved, it will hit my credit because I pay less ( trial amount) than my current owed amount. That already scared me, but I just thought maybe he didn't give me the correct information since it doesn't make common sense because I think it should be fair after trial payment, if GMAC wouldn't finally approve, I just go back to my regular payment, shouldn't hurt my credit.

From your case, it is not only hurt your credit, even foreclose your house!
It is a criminal!

Am I correct? I am confused and scared by GMAC.

Should I call GMAC next Monday to reject this mortification trial payment offer which I filed back in March and called numberous times? It sounds a tricky thing. Now it is still not too late for me. I can still catch time to pay my Oct. payment although I was told I don't need pay it now.

Any advice? Thanks!

[KeysMom]

We to have been trying to modify with (Homecomings/GMAC )for over a year now. Long story posted on another thread.After speaking this week to loss mitigation we were told our loan is being sold and we can no longer modify with the we are currently in foreclosure as of Sept.09. Maybe the banks new tactic is to sell these loans as performing (temporary modification) with no intentions of ever modifying loans. I would not put it past them to defraud in anyway they can.