Help with my parents loan Modification With GMAC.

[MmSuperMario]

My parents already did all the paperwork on a loan modification with GMAC. They received just recently only to find that instead of lowering the payments, they went up.

What can my parents do in this situation? Should they just let the house go into foreclosure because they can't make the payments? Should we seek legal help?

[Moe Bedard]

Hi MmSuperMario,


Welcome to the forum and thank you for joining................

Sometimes a modification will increase payments if they are in default or behind on taxes or if the original loan was a low rate already and interest only payments.................what they can do to see if they can get a modification to a low fixed rate is try to go through a non profit such as NACA that will work with them on a budget and a modification proposal to present to the investor and GMAC..............they would need to meet the criteria which you can click on the link below to see the steps............
https://www.naca.com/refinance/refinanceTenStep.jsp