GMAC Short Refi: please help!

[dd_75]

I have several questions about a GMAC short refi. My situation is very common, bought the house at peak and now I'm upside down about 150k. My company just closed the site and I didn't find a job just yet but I have not missed any payments. I called GMAC and a banker said that I could do a short refi and he sent the new loan paper (FHA). What was writen in the papers is different form what I talked on the phone:

*the interest rate is at 5.5% (as he said on the phone) but I have to buy 2.5 points that about 10k. Total closing costs at about 20k ( I understand that I have to pay mortgage insurance upfront).

* there is a $100/month hazard insurance: what is this?

I caled at least 5 times the morgage broker but no reply. Does this look fair? By doing this I would pay $700 less/month. I don't know what to do, I understand that a short refi comes with a credit score penalty (and I don't like it), but I feel that I am geting husseled by the broker since the 2.5 points will more likely go in his pocket. He didn't said anything on the phone about 2.5 points discount. Shoul I call GMAC and ask to talk talk to a different broker? Should I take the offer?

Please help!

[Moe Bedard]

If they are offering your the short refi..............that would mean that the investor, most likely GMAC, is willing to accept a short payoff of your loan............in that case you should get a second or even a third good faith estimate to compare..............you should always shop lenders.......

here is a link to FHA approved lenders.............find a couple in your area and ask them to put together a good faith estimate for you based on the info..............

http://portal.hud.gov/pls/portal/doc...(01-09-09).PDF

[dd_75]

You mean I should not take the offer. By doing this "good faith estimate" what do I accomplish (I am sorry I don't know to much about refinancing/short refis I'm still learning; this is my first house and I don't want to lose it). Do I need this to bargain with them or can these other lenders - from the PDF you attached - do the short refi. Why am I asking this is because I though that in a short refi the original lender "forgives" part of your loan.

[Moe Bedard]

we can not advise you on whether or not to accept the offer..........that is entirely up to you.

Your question was.............

Shoul I call GMAC and ask to talk talk to a different broker? Should I take the offer?
Because you felt like you were being "hustled" by the broker............

so my suggestion to you was simply before you sign anything.............get a second opinion...............if you take the same scenario to one of the FHA approved lenders............you will be able to get a good faith estimate of what the fees will be from them.................and then you can compare and see if you are getting hustled..............that is all.


It just didn't seem .............from what you posted.............that you felt comfortable with this broker..........

[dd_75]

I understand. Thank you!

[mykidsmom1119]

Hi,
I just wanted to share with you my experience. I completed a short refi with a $200K principal reduction from GMAC. Because we are asking them for help we have NO negotiating power. When I did try and negotiate the loan officer became so rude and impossible. He had a "take it or leave it attitude". They charged me so many fees and gave me a 6.5% interest rate. I had never been late and had a 805 credit score.

The "hazard insurance" is just your homeowners insurance.

Hang in there. It's a long process. Try and get the loan officer's email address. I found my loan officer responded better to email then he did phone calls.

Good luck!

[dd_75]

Thanks for sharing your story. So eventually did they waive some of the fees? My reduction in at about 90k. I called this guy 6 times already left messages etc but got no reply. Can I change the broker talk to somebody else? How did you get his e-mail? Thanks again.

[mykidsmom1119]

They did not waive any fees. The loan processor was awful. I tried to go around him to get someone else to deal with but that was a dead end. It was a nightmare. I am typically a great negotiater but I promise you it wasn't going to happen with GMAC Mortgage. Their position is "We are forgiving all this principal, how dare you try and negotiate anything." The loan officer I delt with actually told me I was acting ungrateful which was so far from the truth. They charged me a ton of points and fees and there wasn't anything I could do about it. If you are in the early stages don't worry too much until after the appraisal. Originally they were going to reduce my principal by $179K but the appraisal came back too low so they had to reduce it even further or forget the deal. They ended up reducing by $204K.
If your house appraises lowere then they estimate they may offer a larger principal reduction.

I asked him for his email address and he gave it.
If you have the first and last name you can try for example: joe.smith@gmacm.com The emails that I got from the loan officer and later the loan processor were first name dot last name @ gmacm.com.
It's worth a try.

Here is a link to my story. You will probably get some questions answered.
GMAC/Homecomings Not Late!

Please let me know if you have any other questions.

I'll be keeping my eye on your thread and rooting you on.

[dd_75]

Thanks you for all the info shared... I had a hunch GMAC will behave this way and unfortunately there is nothing we can do. I'll go ahead and send the loan application and cross my fingers.