What are my Options???

**umbobo** · 04-19-2010, 07:07 AM

Here is my story.....First mortgage with Bank of America, $928 a month, second mortgage with GMAC $900 a month. Second mortgage is a 14% interest rate. We owe a total of $165,000 on both mortgage, house is now worth $148,000. Can't afford our totally monthly payment of $1828 a month. Ask for a loan modification on our 2nd mortgage since the interest rate is 14%, filled out the hardship paperwork, was declined stating we made enough to pay our mortgages, that is true IF we don't eat!!! We are current on both mortgages, basically have been paying our bills but have nothing left over for necessities. Have called GMAC a million times, get transferred a million times, and speak to people that act like they don't know what end is up. The only option they gave us is a forbearance for 3 months, but that won't help us in the long run. We are so close to saying the heck with it and just doing a foreclosure. Wanted to know if anyone had any advice as to what we should do? Thanks!

**Evan Bedard** · 04-19-2010, 07:23 AM

Welcome and thank you for joining the community.

What is your current gross monthly income for the month?

**umbobo** · 04-19-2010, 07:58 AM

Originally Posted by Evan Bedard

Welcome and thank you for joining the community.

What is your current gross monthly income for the month?

$6600 a month, gross.

**Evan Bedard** · 04-19-2010, 08:36 AM

OK well on your first it will be very difficult to achieve a modification since your payment is much lower than 31% of your gross monthly income. So basically it will be your second that needs to adjust. The fact that you are current on your mortgage will make it much more difficult to get their attention, but it is not impossible to achieve while current. What dept have you been calling?

**umbobo** · 04-19-2010, 08:47 AM

Originally Posted by Evan Bedard

OK well on your first it will be very difficult to achieve a modification since your payment is much lower than 31% of your gross monthly income. So basically it will be your second that needs to adjust. The fact that you are current on your mortgage will make it much more difficult to get their attention, but it is not impossible to achieve while current. What dept have you been calling?

Thanks for the quick response. We are actually fine with our 1st. It IS the 2nd that we are desperate to modify. I have NO IDEA what dept I've talked too with GMAC. Everytime I call, I get a different dept and a different response. We filled out the hardship paperwork with GMAC and we were declined for any help. I don't understand what they are looking for? Do they want you to have NO income or HAVE income? Does that make sense? If they would just reduce our rate from 14% to 9% we would save $400 or so a month. They offered us a forbearance, but that will only be temporary. Don't know what my other options are?

**Evan Bedard** · 04-19-2010, 10:23 AM

You must have income in order to qualify for a modification. When you calculater your income and ALL of your expenses what do you have left over at the end of each month?

866-841-3432 and 215-682-3086(corporate)
Javid Jaberi, Senior Vice President (javid.jaberi@gmacrescap.com)

**umbobo** · 04-19-2010, 11:23 AM

Originally Posted by Evan Bedard

You must have income in order to qualify for a modification. When you calculater your income and ALL of your expenses what do you have left over at the end of each month?

866-841-3432 and 215-682-3086(corporate)
Javid Jaberi, Senior Vice President (javid.jaberi@gmacrescap.com)

When I take my income and deduct all my bills (not gas, food, or other necessities) I have a grand total of $300 leftover for 4 people for the month. That's my problem, I've been paying all my bills, but I don't have enough to leave off of for the month. If I could reduce the interest rate on the 2nd mortgage, it would obviously free up money. I've cut everything I can possibly cut. I'm beginning to think foreclosure is our only option.

**Evan Bedard** · 04-19-2010, 11:49 AM

I'm sorry to hear this and this is a problem many people are having at this time. Banks do not care what other debts you have acquired, they feel your mortgage is your biggest obligation. However, a 14% interest rate is completely ridiculous and they should offer a lower rate just based on that fact. Use the contacts I listed above to get past the customer service dept. Foreclosure should no be an option at this point..

**umbobo** · 04-19-2010, 11:57 AM

Originally Posted by Evan Bedard

I'm sorry to hear this and this is a problem many people are having at this time. Banks do not care what other debts you have acquired, they feel your mortgage is your biggest obligation. However, a 14% interest rate is completely ridiculous and they should offer a lower rate just based on that fact. Use the contacts I listed above to get past the customer service dept. Foreclosure should no be an option at this point..

Thanks for the help!