Gmac

[angel83]

I just learned that a friend of mine today got word that they are doing principal reductions (she got one) - lives in same area of So cal that I do.

[Moe Bedard]

they are doing what is called a principle forbearance or deferment.........not the same thing as a reduction.........a reduction would forgive the principle balance which the investors are not willing to do...............a principle deferment leaves a balloon payment due at the end of the note.............you may want to clarify if that is the case..........ask if there is a balloon payment due at the end of the term of the note if the property is sold or refinanced............because this is what they are doing on firsts..........it takes off am amount on the prinicple up front and puts it on the back end of the note which is due if you sell or refi the note........so it is still in the backend.

[angel83]

It's called a short refi and nothing added to the note. Took it down by 80,000

[Moe Bedard]

That is placing a completely new loan on the property and we already had some of the investors on GMAC loans agreeing to this.....and as long as someone had only one lien......GMAC investors also had agreed to the H4H FHA refi which does the same thing as well, .........but that was as far as it went....because the new loan wasn't getting bought by any investors... and the member wasn't able to qualify for the refi....so that is good that your friend was able to close on their new loan and get that all in place.........that would be the first one that I have heard of that actually closed and was funded.


one thing that your friend should make sure of is that the old note, once it is paid off, is reporting on her credit as settled paid in full..............not settled for less than amount owed.