GMAC mod approved: Questions about next steps...

[jsturner78]

Hello. My GMAC loan was approved for modification. I just completed the 4-month trial period and successfully made all my payments etc. I called over the phoen and received confirmation that my mod was approved. I am expecting to see the documents today or tomorrow. I have questions, but I will outline some details.

Loan value is approximately: 357K
Before modification: 5.25% FIXED
Payment before mod: $2480
Rate after mod: 3.875% (5 years)

Essentially, the savings are $286 per month. I've heard of better outcomes, but anything helps.

Terms: 3.875% rate for 5 years; Year 6: 4.875%; Year 7 resets to original rate of 5.25%.

I have questions.

1. Do you have any insight about the terms of this modification and is there anything I should expect from this point forward?

2. Can I negotiate these terms? I've heard of some people getting rates that are permanently fixed at the reduced rate. Is there any chance of getting a permanently reduce and fixed rate?

3. I've heard "stories" that some people are locked into their mortgages if they accept modification. A co-worker says he must stay in hsi hosue for 10 years if he accepts his modification, or there are penalties. Are there any looming things I need to be on the lookout for, such as pre-payment penalties or contractual language that will be of concern, if I sign off on these documents??

4. My wife works part-time and is on the verge of becoming unemployed. We have 3 kids age 5 and under, so she is a stay at home mom. In the event that she loses her net income of $1300 per month, am I eligible to apply for a 2nd loan modification, or am I "stuck" in this loan modification until it resets? (I am working a 2nd job already, as I took a substantial pay reduction at my full-time job.)

Thanks in advance. I will be lurking.

[~Jess~]

The rules of HAMP only allow 1 modification for the life of the loan. I don't know if you can apply for an in-house mod though.

[jsturner78]

Ok. There is a ton of information here. I am doing some scans to see if other threads answer my questions, but many situations appear to be unique.

I am not sure how to determine if my loan is an "in-house modification" or a HAMP. I believe it is an in-house, as I applied directly through my lender and none of my paperwork is labeled with "HAMP" type language.

How do I determine what type of mod I have? Is one better than the other? Is an in-house better or worse than a HAMP? I just want to be as informed as possible. Thanks.