GMAC Mod Proposal

[jthaz]

Hello All, this website has been amazingly informative and helpful for me given the difficult times. I have gone through the process with GMAC with the following details:

Home in AZ purchased in 2005 for $395K
Comps estimate is $270K
1st 5/1 Arm $319K 5.125% GMAC $1644/mo Late 4 mos.
2nd HELOC $76K 7.5% EMC $490/mo Late 2 mos.

I have gone through the process with GMAC (investor is CitiGroup) where I paid 2 months and then they just sent me a proposal to reduce my rate to 4.75% for another 5/1 ARM. This effectively drops my payment $100. Not enough to really make a difference. When I called they said that they could not lower the rate anymore. Has anyone heard of them going lower? Also, I was wondering if anyone heard of borrowers asking their lender to remove the delinquent payments from their credit in return for payment?

[Justin S.]

Hello Jthaz and welcome to the forum.


Have you started negotiations on the 2nd at this point? Perhaps you can get the savings you need there. In some cases, where the 2nd loan is completely upside down such in your situation, the lender is willing to settle the 2nd for a lump sum. As far as the late payments, it definitely wouldn't hurt to ask, or maybe even find a local attorney who could attempt to negotiate that for you. Keep up the fight and don't give up!


Justin Shields
Legal Assistant
Law Offices of Fransen and Molinaro
Phone 888-432-6634 ex.254
Fax 951-880-1589

[mirkus35]

My loan just transferred to GMAC. It is delinquent since Dec 15th, 2008. They offered me an interest rate of 4.25% fixed for 40 years. I didn't request the modification either. The current rate on the loan is 5.75%.

[jthaz]

Yes, I have arranged to make between 3 and 6 payments and then they will review everything. I have made 2 and have sent documentation to them on my current financial situation. I have read on this forum that lenders in similar situations like my 2nd are settling for a lump sum. That would be great from my perspective. I have already had a bad experience with a loan modification company that claimed to be "attorney based" so I am a little gunshy about that.

[jthaz]

mirkus35 - do you know who your investor is?

[Justin S.]

I am not sure about the whole "attorney based" thing either. Either you are a Law Office or you are not. I would only work with a company where you are able to talk to the attorney at any time. If you are not able to talk to the attorney prior to retaining (some will require a fee for their time which is reasonable) than I would run in the other direction.

[mirkus35]

I asked them, they said it was GMAC. I'm not convinced the person I was talking to knew what he was talking about though.

[Paul Molinaro Esq.]

Sometimes the lenders don't know who the investor is... yup... I've filed cases on behalf of my clients against a party identified as the lender by the servicer only to find out that it might really be another entity... there was no trickery going on from the opposing parties, just pure confusion. And that is just one of the things that explains why the world is in this financial mess.

- Paul