Homecomings/GMAC Loan Mod

[milolee]

I am working with a company that is attempting to negotiate a Loan Mod with Homecomings Financial. There was a another posting that indicated the exact same situtation as ours. We provided our Loan Mod Co. with our info and signed a authorization to allow "release of information" and Homecomings would not accept saying that it had to "their" official form. Is this common practice or is Homecomings being really picky.

We bought our home 4 years ago in San Diego at the top of the market. My income has gone down by 55% in the last 2 years. We are on a 7% 5/1 ARM, upside down and could not refi....paying $3500 plus without cutting into principal.

Great forum.

[milolee]

In addition to my original post I found out that the investors for my loan is through Residential Funding Corp...Is this good or bad? I think they are in house.
Any input would be great.

[Moe Bedard]

Hi milolee,


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

Residential Funding is the investment arm of GMAC.........so your loan is serviced and owned by GMAC..........they won't have to go to an outside investor for any approvals.....everything will be able to be done in house.
Some servicers do require the third party authorization to be on their own document for their file.

Good Luck with the mod!


Keep us posted on how it goes............

[milolee]

Well it seems after providing Homecomings with the third party authorization on "their" paperwork it appears that Homecomings is attempting to circumvent the company that is handling my loan mod and trying to deal with us directly. Received a letter from Homecomings wanting us to provide "financial" when this information has been provided to them already by our loan mod co.
Is this common? Any input would be great.

[Moe Bedard]

Check and make sure that the company you are working with in fact did get the paperwork to Homecomings by asking them if they received it..............if they didn't, it shouldn't hurt the process for you to give it to them directly just to be sure.

[milolee]

Ok, here is our situation. We purchased our home in 2005 for $555.000 in Socal. Put 10% down and got a I/O ARM loan @ 7% because we were recently out of BK. We figured we would be able to refi in about 2 to 3 years. Tried to refi but with home values going down and loan programs tightening our options were limited . In addition our income has gone down by about 30% so it became tough to maintain our $3600 a month payment but we were never late. Talking to our ex-mortgage broker he suggested looking in to a loan mod and we decided to go that route using a 3rd party company. They suggested that we should stop paying our mortgage while they negotiate a loan mod. We stopped paying Nov of 08. NOD was filed at the end of January of 09 and still no loan mod with Homecomings. Partly due to Homecomings and our loan mod people. (another issue).

We like our home and would like to stay but financially it has to make sense. We would like our payments to be at around $2500 a month. Is this unreasonable or unrealistic? Should we keep fighting or do we just walk? I know this is a personal decision but would like some feedback from someone that isn't emotionally involved. We can't work with NACA since we own another property. We still make decent income thank god, but now we are trying to make the best out of the situation we are in. Our credit is trashed so we can't refi, our loan will adjust next year, we were not cutting into principal at all and home as depriciated in value. Any valued feedback or advice will be greatly appreciated.

[~Jess~]

Is the payment (including taxes & insurance) more than 31% of your gross income? If so, you can apply for Obama's new affordability & stability plan.

[Moe Bedard]

milolee,


Before making a decision like that..............the person that you would need to be speaking with would be a real estate/foreclosure attorney in California so that they can help you decide which route to take. They can look over your docs and see if the loans qualify as purchase money and exactly what type of situation you would be facing in your state if you did walk away.................and after being more informed of your options.........then make the decision based on that.

[milolee]

I did consult with an attorney and he stated that if we did walk that it would be pretty clean cut. He also stated that the loan mod company that we are working with hasn't provided sound advice. He feels that we make too much income to qualify for a mod. Our mortgage is around 29% of our gross. We do have other debts like cars and such which makes things tight especially since our income has dropped.
He thinks that if the cramdown provision passes that me be our only viable option.

[milolee]

Has anyone ever heard of a "partial forbearance" being offered. We had a NOD filed in January and according to the people helping us with our loan mod Homecomings is willing to offer a partial forbearance so that the foreclosure proceeding will be stalled and would allow extra time to negotiate a modification.

[milolee]

We have a tentative "partial forbearance" and a repayment offer from Homecomings. Our current payment is $3564.00 and they are wiiling to accept payments of $2850.00 for a 3 month trial period and stall the foreclosure and see if we can work out a more permanent modification.
Question is that if we accept this and are able to make these payments aren't we essentially settling at this monthly payment amount?
Also, is the partial forbearance payment something that can be negotiated without risking the lender rescinding their offer?
Thanks in advance to any advice to this matter.