GMAC - beginning loan mod process

[lmalka1]

I'm brand new to this forum and after reading a number of threads, am already greatfull for this information. I am in the start of a loan mod process with GMAC. After waiting on the phone while listening to the same loop of 16 bars of "hold" music for 1 hr. 20 minutes, the loan specialist answered and launched into a series of questions about income and debt. After hearing all my debt and hardship, she said, "we only consider loan modifications after the hardship has ended". Thinking that my hardship will end once the loan is modified, I'm sure you all understand my confusion.

I requested she fax the loan mod papers, which she promptly did and was told that once I submit them, it is assigned to a processor within 72 hours and "worked" within 5 days.


I'm confused about the profile of a borrower they're willing to help. Will they only deal with hardship or do they want to work with people who can pay. If I could pay, I wouldn't be calling them.

I have an interest only loan for a rental that began at 7.75 and jumped to 9.65. She said the only thing they would do, if approved, is to return the loan to the original interest rate; no reduction to current market value; no payment deferrals, etc.

Does anyone have experience with GMAC and the profile they're looking for?

thank you!

[Moe Bedard]

Hi Lmalka1,
Welcome to the forum and thank you for joining.............

The difficulty that you are going to most likely run into with GMAC is that you are not trying to modify an owner occupied property as this is a rental property they are not viewing it as a dire hardship situation because it is an income property and viewed as an investment.
While very very few lenders are even modifying rental properties......with GMAC we have had a couple of members with rental property that have decided to sell the property as a Short Sale. The lenders also are not lowering mortgage amounts for modifications however, they might take a Short Sale if you were to sell it with the current market conditions......
If they do approve you for a rate freeze of the start rate of 7.75% and you don't think this is going to help your situation at all.....then you should also ask for the Short Sale package and work on that too...........Short Sales do take a while from start to finish and require a Real Estate agent well versed in these types of sales.....

You can read the GMAC threads if you go to the search at the top of the section and type in GMAC........at least you might get some ideas from what they too are going through.....
I hope everything works out for you.......

All of the traditional lenders want to see the hardship that has caused the delinquency of the distress in making the house payment to have abated...they are afraid that if they modify the loan while the hardship is still in process that the borrower will fail in the modification itself. If the hardship is substantial enough in other words loss of employment and no income, there would be a failure of the modification as there would be no income to support the payment, even modified. Thi s is normal, usual and customary for the mainstream lenders like GMAC, Country Wide, Chase and others to want to see the abatement of the hardship and that the borrower has weathered the storm and is going forward able to preform on the loan whether modified or not.

They are not, none of them are doing principle reductions, this when it does happen is because the property is uninhabitable or there are issues that make the mortgage position utterly untenable....mostly condition of the property...

Additionally they are not prone to go below the original rate, that is what the anticipated return was initially by the investor and as such they are reducing the future anticipated returns on the investment by going back to the original rate....so going below is rare, very rare.

This is a rental unit, they will modify rental units, however they are income producing properties and as such they do not have the latitude that they have on a primary residence....they take the position that this is not the roof over your head and do not take as aggressive a stance in the modification process and terms.

[lmalka1]

Thank you for your responses. I will keep you apprised in my progress. Although its not the roof over my head, it is the only investment I have.

Thank you.

Please keep us posted and let us know your progress in this task. Remember this is now a second job, call, call, call and fax, fax, fax....

[ohio // gmac]

We have a first an second with gmac. My husbands company has cut his hours and wages by filling chapter 11. I was fired from my job due to illness restrictions and had to take a part time min-wage job. I have had several company's contacting us, but I have read about the scams. How much should a Loan Modification cost and who should you trust? How far behind do you need to start? Should I contact gmac or go through the Loan Modification

[M Van Meter]

I have been trying to get a loan modification with GMAC since June (first mortgage, owner occupied). The first time we sent in the packet they said our income was too low, even though we were current with our payments and had never been late since the loan origination in 2005. We told them we could make some adjustments on our bills, and they said well do the mod package over. We did. Then went the usual flurry of us calling, faxing tons of documents, and them saying it's in process. They wouldn't even tell us if we qualify. Then I told them that I was calling my congressman...that got their attention.

We missed our first payment ever in July, by the end of July I called them and finally, someone offered us a reduced payment amount. Hubs is collecting unemployment insurance and I left my job to care for our 2 small grandchildren. We have been making our payments from savings. This time the person we spoke to said it "looked like we qualified under Obama's plan." Yay!

They said the next step was to determine the fair market value of the house. Also, in order to get the reduced payment, we had to sign a foreclosure form! Even though we were only 1 month behind. Called them about that and they said it's just standard practice, doesn't mean we're actually in foreclosure. What worries me though is if the mod doesn't go through, they can foreclose on us if they decide too, since we're not making the full payment at this time.

Whew, I apologize for the windy post but I'm just trying to list the events as they occurred.

Anyone else getting the run-around from GMAC?

[lmalka1]

First, I apologize for not following up on my post. I was successful!!! I found the trick that worked for me. GMAC is a loan servicing company, which means there is some investor somewhere that owns the note. I asked over and over again who is the investor on my loan and finally got the answer. I immediately researched and found the investor's contact information, called, and within days, my modification was approved. This isn't even my primary home, it's a rental.

My interest rate dropped from 7.75 to 3.5 for 5 years! My payment fell from $2150 to $873!!!! I decided to have the payment include taxes and insurance for a total of $1270/month. I receive rent for $1600 so am now in a positive cash flow.

So I suggest finding out who the investor is. If it is IMPAC, here is their information:


Impac Mortgage Holdings, Inc.
19500 Jamboree Rd.
Irvine, CA 92612-2401
CA Tel. 949-475-3600
Toll Free 800-597-4101
Fax 949-475-3969
Welcome to the Impac Companies

The person most helpful to me was Delaina Mitchell at 888-305-9703. Her direct number is 949-475-3727.

You have to show positive monthly cash flow and be a good credit risk. I couldn't believe how easy this was and how fast things went once I finally got to IMPAC. GMAC was a nightmare!!!

good luck!!!!

[wannastay]

This site has provided me with tremendous amt. of information. However, we have not been successful and are hoping to get some detailed help by posting our story.

We are also trying to modify our mortgage with GMAC (previously with Homecomings). We have been trying since Mar. 2009, but they were always missing documents although we are certain we submitted everything complete. We were current until May. 2009, but stopped making payments since Jun. 2009 as my husband was laid off as of 01Jun09. We sent our modification pakage in July, and was denied due to insufficient income.

Our first mortgage with GMAC close to $3700 (P/I and T/I all included, 6.875% 30 YR fixed) and 2nd with WAMU about $115 interest only. 1st amt. about $500K and second about $35K. The accessed val. of the house per county is $447K.

With out combined bring home income of $6K monthly with the child care exp. of $1000 monthly, I can only say it is a miracle we managed to get by since Jul. 2007 until May. 2009.

Now with my husband laid off, my income and his unemployment ins. GROSS income is about $5500 a mnth. For our July application, we were denied due to insufficient income.

Now I tutor several kids and bring additional $2000. This is not documented of course although I will despoite the money made into our acct.

I am not sure with this additional income, whether they will approve our mod. if we applied again.

Please help me ideas with what to do for us to stay in our house. Thx.

[lmalka1]

Follow the money!!! Figure out who might care if you default on your loan, like the investor and mortgage insurance company. Find out who your investor is. You can check the Freddic Mac and Fannie Mae websites if either one of them is the investor. Here's FreddieMac: Working With Your Lender to Stop Foreclosure - Freddie Mac

Also, your mortgage insurance PMI has a high stake in your not defaulting. Contact them and they'll help you stay in your home! (I'll post more below)

Private Mortgage Insurance
home.preservation@pmigroup.com

If your situation is urgent, you can call them at:

800.497.4764
Monday - Friday
8:30 am - 5:00 pm PST

You can also call HUD or Consumer Credit Counseling Services. They DO HELP and will call the lender on your behalf: 866-437-3019


The theory about getting help from PMI is this:

1) If the lender wont negotiate a workout on the loan and forecloses, and then files a claim with the PMI.
2) PMI company would have to pay the claim, and be out that money.
3) In order to not have to pay the claim, its in the PMI company’s best interest to try to encourage the lender to negotiate a workout with the borrower.

I think this makes sense. Or at least its worth a try? IIRC you can find out the name / contact info for your PMI from your HUD-1 statement.
Quote:
Unlike government guaranteed or insured loans like FHA or VA loans, the loan may have private mortgage insurance. Private mortgage insurance, or "PMI" as it is commonly referred to, is an insurance policy that protects the lender against a loss on the loan should it go into foreclosure. Generally, mortgage insurance is only required on conventional loans when the borrower finances more than 80% of the sales price when purchasing a home or refinances into a new loan with an amount greater than 75% of the appraised value of the home.

If the lender is unwilling to work a borrower, the borrower should contact his or her PMI company requesting assistance. The PMI company may be willing to offer additional solutions or alternatives for a home owner rather than having to pay the lender for any losses in the event of foreclosure.
The other clear benefit to borrowers is the workout expertise that comes with mortgage insurance. No one takes on a mortgage intending to default, but bad things do sometimes happen to good people. Today, as ever, the leading causes of mortgage default are death, divorce and illness. At PMI, for example, working with our lenders, we were able to save the homes of nearly 3,000 families in 2006 whose PMI-insured mortgages were in default. I believe this commitment to sustainable homeownership is one of the things that makes mortgage insurance and ideal choice for first-time borrowers.
PMI External Loss Mitigation and Claims Manual Update May 2007

http://www.pmi-us.com/media/pdf/reso...crefmanual.pdf
Quote:
Who to Contact
PMI has a dedicated team of Loss Mitigation professionals who work exclusively on preforeclosure Loss Mitigation and Workouts. PMI does generally require the Servicer to contact PMI with any workout request. Our Loss Mitigation Team does understand that timing can be very critical on Workout approval and we are dedicated to providing a quick turnaround on all workout requests.

How to Contact Our Loss Mitigation Department
To facilitate efficient turnaround on workout requests, PMI has several ways to receive requests. We have a dedicated email address for Loss Mitigation:
loss.mitigation@pmigroup.com Requests received through this email account will be routed to the appropriate Loss Mitigation Specialist for review and processing.

PMI has also created a dedicated Fax line for Loss Mitigation requests: 888-305-2956.

All requests received via this Fax line will automatically go into our imaging system and will be routed to the appropriate Loss Mitigation Specialist for review and processing.

Most Workout requests can also be sent to PMI via our E-PMI Servicing Website. Please contact PMI for more details on E-PMI Servicing and how to get a login.

[M Van Meter]

I forgot to say Moe, thank you for this website!

That's good advice, I have no idea who our investor is.

They did tell me that our modification should be done by the end of this month (August). I sure hope it turns out positive for us and all the others in need.

[my550i]

lmalka1 & M Van Meter,
Do they care about Assets such as 401(k)?

[M Van Meter]

Good question.

Well we listed our 401(k) retirement savings on the form. According to what I've read about how the mods work, they aren't allowed to consider your 401 as income. Which it really isn't unless you are of retirement age.

I'm calling them today for an update, will post here if there's any news.

[M Van Meter]

Originally Posted by ohio // gmac

We have a first an second with gmac. My husbands company has cut his hours and wages by filling chapter 11. I was fired from my job due to illness restrictions and had to take a part time min-wage job. I have had several company's contacting us, but I have read about the scams. How much should a Loan Modification cost and who should you trust? How far behind do you need to start? Should I contact gmac or go through the Loan Modification

Loan modifications are free! If someone asks for money, they're scamming.

Here's a link to the guidelines:

Making Home Affordable - Home

[M Van Meter]

Made my weekly call and nothing new, the BPO is not back yet.

But I did find out who our investor is! It's Resident Asset Management.

Does anyone here have them as their investor?

[my550i]

Originally Posted by M Van Meter

Good question.

Well we listed our 401(k) retirement savings on the form. According to what I've read about how the mods work, they aren't allowed to consider your 401 as income. Which it really isn't unless you are of retirement age.

I'm calling them today for an update, will post here if there's any news.

That's good. What about cars and personal assets?

[M Van Meter]

I put down my car, which I make a monthly payment on. Hubs car is paid for and we didn't list that, I don't recall seeing a place for it. We didn't list any investments, or savings.

[M Van Meter]

I am so angry right now I can hardly type. I just called GMAC to get an update, only to be told that nothing had been done on our file since June. Doesn't matter that I have been calling them since June, and they have been telling me that it should be done by the end of August. Now this lady says, Nope, nothing has been done since they received the extra documents they requested at the end of June.

So apparently, everyone else that I have talked to has a) been lying or b) doesn't know what they are talking about.

Now, how can nothing have been done since June when they offered us a reduced payment plan in July, for 5 months? So...she really doesn't know what she is talking about either.

She said she assigned it to a loan modification analyst and we should have an answer in 74 hours but we needed to call back. *sigh* She did give me the name of the loan analyst though.

I'm surprised anyone gets a loan modification, and I wonder where those billions of $$$ are setting that Obama has assigned for this bail-out? Because folks sure aren't getting the mods like they should be.

Now they will probably tell us that we don't even qualify

[M Van Meter]

I meant to say they said we should have a response in 72 hours, not 74. Not that it matters much. I don't believe anything they say at this point.

[M Van Meter]

The news is not good.

After being given the run around since June, now they say we don't meet the requirements because hubs and I don't both have permanent jobs now, like we did when we got the original loan. Hubs was collecting unemployment insurance and I was working 2 days a week at a temporary job when we applied.

Now hubs is back to work selling real estate but not making a lot of money. So they said well we can send in a letter saying he had employment and start over, but that we had to re-fax all the documents

I am so sick of those people at GMAC I can't stand it....they suck!

[M Van Meter]

Got a letter from GMAC, once again contradicting what they had told us. Instead of saying we were denied because we didn't qualify, they said "the documents you submitted in support of a loss modification are incomplete..."

This is not true. About half the time they told us they had everything they needed, they other times they said they didn't get everything. There is no winning with those double talking people.

I have a phone appointment set up with one of the counselors through the HOPE program.

[matteoroe]

Back in the end of June we hired a attorney to help us with our GMAC 1st/SLS 2nd. This last wednesday I spoke my attorney. Shortly after I hung up the phone I got a call from GMAC. Woah! Linda went on to say she was calling because of a compliant from the BBB. (yes, I submitted a complaint)
Linda went through my paperwork and asked 1 or 2 questions. She explained she needed to crunch a few more numbers. She submitted the loan into the system and said it would come back within 24hrs. Linda went on to say she is on vacation for the week (she may come in the office cause she knows her work load will increase) and she will get back to me on the 14th. I hope and pray they can help me. Linda seemed very nice. I want to know since I am not late on my mortgage (yet) and under the MHA plan you can refinance if you are not late and (if upside down) reduce principle. Are the banks NOW doing this? Reducing principle?


Thank you!

[macvac]

Dear Imalka1, thanks for your message. this is exactly what i was looking for. impac is the investor for my house. my only problem is im actually in forclosure. do you think this hurts my chances?

My story is Im a musician and have never been out of work except for april, may and june,which caused me to default.I actually had 2 months of payments i was about to send in only to find out i missed the date by 5 days. I imeddiatly started on a loan mod and was actually contacted by a girl who said she had my case but she couldnt get to me for 60 days. i waited and finnally called and was told she doesnt work in that area anymore I finally got some one who said i needed to re submit all the papers which i did and now i call every week. I live in NJ so they say i have 14 months till the house actually will go for sale.

[macvac]

ps, i just noticed my spelling sucks. sorry

[boody66]

I'm so glad I found this website/blog. I have been struggling trying to get a loan modification through GMAC.

First I went through the government counselors who took all my information and said they would make a recommendation to GMAC to modify my loan. When I finally heard from GMAC 3 weeks later, they told me I had to complete their forms and fax them in, which I did. I wasn't expecting to hear from them for at lest two weeks and within one week I got a form letter in the mail saying that my request was denied because I have too much income.....WHICH I ASSURE I DON'T! I checked with the calculator on the Hope for Homeowners link and I am well below the 31% mark.

The thing that really drove me crazy is that I didn't even get to speak to anyone directly. when i called the number on the letter they sent, all I was able to get through to was general customer service....I cannot seem to get connected into the Loss Mitigation department!

At the time we were one month late, now were are two. I faxed them a letter begging them to reconsider and at least call me so that my situation can be discussed.... I don't have high hopes, though.

Does anyone have a direct phone number to GMAC Loss Mitigation Dept? Any other suggestions?