Loan Mod with GMAC

[mrsnarpoose]

Hi,
Great site with great information.
I have a question regarding Loan Modification and if I should go about it myself (I don't mind following up) or solicit the help of NACA from the get-go. Which do you think would be more successful?
Here's my "short story".
We have a $580K 5/1 Interest Only ARM due to reset in 2010 on our primary residence (no seconds). We are able to make our payments now (and have always been current), but NOT when it resets in 2010 where principal will then be included. We have had a slight decrease in income in the last 2 years and have a new baby on the way.

I have called GMAC a few times to try to refinance, but our LTV is somewhere around 95% at this time. For a jumbo, they are looking for 80% for refinance. GMAC loan officer transferred me to "Loan Modification under the Obama plan". I spoke to someone that advised they would send me the "package" and that I would receive in 10 days. I spoke to them on 3/25/09.

I'm looking to try to get into a FIXED rate loan with payments we can afford (principal & Int). We want to stay in the house if possible.
So, do you think I'm ok trying to work something out with GMAC directly, or should I automatically solicit help from NACA? What do you think the possibility of getting a loan modification are at this point (if you can guess)?
Thanks again for a great site. I've never used one of these forums before, but really find the information on here very helpful.
mrsnarpoose.

[Moe Bedard]

Hi mrsnarpoose,


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

What I am able to do is to give you the information regarding both avenues, so that you are able to see which route you would like to take.........we have members that are doing it themselves and others that are using NACA if they are able to.............either of these options are free................

Here is the contact numbers and process to get started with GMAC and to check eligibility using the new modification program guidelines............

Homeowner Help


Here is the link to the info for NACA........
https://www.naca.com/refinance/refinanceTenStep.jsp

[mrsnarpoose]

Thanks for the quick reply. I'll explore both avenues.

[mrsnarpoose]

Hi,
I would like to solicit feedback regarding the below hardship letter that I'm trying to write to GMAC. Thanks for all input and/or advice.
To Whom it may concern:
We are writing to explain the extreme financial hardship it will be for our family when our 5/1 Interest Only ARM adjusts. The change in rate along with principal being added and amortized over the remain 25 years will not allow us to continue with payments. It will ruin us financially.

In addtion to the rate adjustment, our family has seen a decrease in income over the past few years due to the current economic conditions. In 2005 our household Yearly Gross Income was $150K, in 2008 it was $100K; this is due to no overtime and/or extremely reduced bonus payouts. We are also expecting our second baby in June 2009 which will add to our already expensive daycare costs.

We have tried several times to refinance our existing 5/1 Interest Only ARM into a fixed rate mortgage with affordable payments. However, we have been told by several GMAC loan officers that our Loan to Value needs to be at least 80%. Given the current housing market conditions for our area, we are not even close to that value. All loan officers have referred us the Loan Modification Department.

We would appreciate the opportunity to work out a loan modification where we can get a fixed rate mortgage with affordable payments over the life of the loan. If our terms were simply frozen or extended, we will find ourselves in the same situation in a few short years from now.

Our family does not want to lose our home and we will make every effort to work something out. We have never been late on our payments, in fact, most of the time we try to make additional principal payments even though we are on an Interest Only loan.

Thank you for taking the time to review the information submitted and considering our request. It is very important to our family that we keep our account in good standing and preserve our credit rating as well as protect our main asset…our home.

Should you have any questions, please feel free to contact us.
Sincerely.

[Moe Bedard]

It is good..............just be sure to include.............

* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.

[mrsnarpoose]

Thanks for the input.
Would you recommend a type written letter or handwritten? or do you think it makes a difference.

Thanks again.

[Moe Bedard]

typed with original signatures is good so that it is clear.