Need GMAC loan mod advise

[charmedhour]

I am hoping to get some advise with my GMAC loan mod from some of the great people here. I have seen wonderful insight. Forgive me for posting more than once, I got a little confused and posted on wrong thread. GMAC has offered us a loan mod, I was hoping for a fixed or lower rate. I do consider myself lucky for the offer we have gotten however we are in construction and business has suffered greatly. We bought our house in 2004 for $320.....and were paying down our principle until construction came to a halt. We have been self employed and have been for 15yrs in construction (we do kitchens, new homes mostly). Two years ago business dropped and after depleting all savings, maxing lines of credit, we closed the business....now with much business debt. My husband took a job 1 year ago, reduced to part time and then finally let go in Oct. We are now having to restart our construction business. I have a small income. After becoming two months late (from lack of income)GMAC called me and offered us a loan mod. Within two weeks I got my papers, I had been approved. I have had to provide nothing. No hardship letter, no financials (which would screw us), nothing. It lowers us from 6.5% to 5% for five years. Saves us $430/mo.! I am thrilled about that but its still going to be tough monthly right now. I also need a $2240 down payment. But I am scared too, we are kept at an interest only. $7600 to be capitalized. So when the arm kicks back in an even higher balance to pay. I called Hope Now for advise, they told me to take it and run. They told me not to call to much attention to the unemployment issue and restart of business, that the lady was giving us a break. I did call GMAC and asked for a 30yr fixed, they told me, they arent doing that. I asked for lower rate, denied. I am afraid we are setting ourselves up for future failure. I have seen wonderful advise on these forums, I was hoping someone could send some my way. Thanks

[mike7311]

The only way to find out if there is more that can be done is if you find out who your investor is. I'm guessing since they're being proactive that the investor is probably fannie mae or freddie mac. GMAC from my experence has not been helpful or proactive. If you see yourself losing your home as a real possiblity regardless of the mod they are offering you, then defintely keep pushing back. There is plenty of contact information available on this site. Keep fighting...

[SoCal 67]

I was just took an offered 'band aid' mod similar to yours from GMAC. My investor was Fannie Mae. I asked my HOP rep there if I could get it fixed, she went to bat for me with Fannie and it was the best they could do. At this point I count my blessings that I at least received something compared to others who have gotten jack. My advice would be to 'take it and run'. You can always call back in a few years if things to not improve. That's what I plan to do. Good luck.