GMAC --- Starting Loan Modification , What will happend?

[vadimm]

House Loan 240K Zillow Estimate 224K Morgage $1850 /mo Income: $2700 /mo Home Bills: $1450 /mo -600 in the red every month. So my story goes like this. I bought a house in 2005 with my mother on the deed. What a mistake that was. Little did I know she was going to quit her job and retire. So now im -600$ in debt every month and I have to go to food pantries to eat. My mother says its her right to retire and live in my house for $250. Ive been pulling my hair out the last year borrowing $$$ and racking up credit cards. Im at my wits end and called GMAC for a loan modification. I filled out the paper work and sent it out with delivery confirmation. Now heres my question according to the Payment Reduction Estimator New Monthly Payment If You Qualify $ 961 how can that be? 50 year loan? whats the best outcome to my senerio? Honestly I think I should just bail out and take my 7 years of bad credit. Ill give short sale a try, especial if I don't have to eat it on the taxes. ---fed up oregonian!

[dianne]

Is your mom on the loan or just on the deed? Is she able bodied, and just took an early retirement? If she is able to work, then she is taking advantage of you. If the house goes, so does her home. She might want to think about that. She should be obligated to pay half of the expenses, not just a couple hundred dollars a month. She won't find rent for that price. Good luck!

[vadimm]

shes on both....shes able bodied and I already know shes taking advantage of me.. those are the parts I already have figured out... i want to know about the loan modification process...

[Cat Damiano]

Hi vadimm,


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


Here is some information about the HAMP modification program and some tools to see if you qualify also there is some good information about the process itself.
Homeowner Frequently Asked Questions


https://www.gmacmortgage.com/finform/hhstart.htm

Hope this helps. Please keep us posted on your progress.

[Madd0g]

If GMAC gave you a 3% interest rate it would be the dollar amount you are suggesting. GMAC was taking over by the gov't and they do give loan mod's out regulary.

For your hardship don't state your Mom wanted early retirement, it must be a hardship, state she lost her job. I have a friend who got a 2% interest rate from GMAC and I got a 4%. I would keep the asset if at all possible.

The Mom issue is another issue altogether.

[vadimm]

I qualify for HAMP and she was fired of course I dint state on the hardship the she "early retired"...my question is how can they reach the magical 33% of gross income payment? $961 a/mo 40yr loan @ 2%?

[dianne]

Vadimm...I just made my 3rd. trial payment with GMAC. I was told, that my permanent modification, should be approved within 2 weeks.
I haven't seen exactly what my final figures are, but was able to figure out, that they deferred principal, until the end of the loan. I am guessing that they lowered my initial interest rate to 2% and extended the loan to 40 years. Good luck!

[vadimm]

@dianne thanks that the kind of info i was looking for. from what I have read on this forum it seems like the trial period is a bit of a gamble...because in the end they can not give me the modification and demand all their back $$$ back....my trick is to hold on to as much money as i can so in case they do want their back mortgage i can have it for them worst case senrio...other then foreclosure worst case..

[Madd0g]

2% rate at $240K principle over 30 years is a PI pmt of 887. To this you need to add your property taxes. Assuming they were 200/month you would be at $1087 PITI.

Your income of 2700 * 31% = 837

If the above assumptions are correct I do not see how you will qualify? They would have to extend to closer to 40 years to get the payment down. Hope that helps.

[vadimm]

For what its worth this is my balance sheet.... I will call and call till i get my way.. $3375 (COMBINED GROSS INCOME) @ .33 X = $1113.75/mo HAMP Goal w/ Escrow & Home Owners ------House Balance Sheet----4/28/11----- GMAC Mortgage, LLC $1,857.00 ($240,505 @ 6% 30yr) Garbage Service, Inc. $44.00 water district $65.00 PGE Electricity $175.00 NW natural Gas $39.00 Cricket Communications $45.00 Frontier Communications $47.00 Dog Food/Bird $100.00 Medical/Dental $258.00 Truck Toyota/Lexus Financial $447.00 CAR insurance company $288.00 $6,900 CREDIT DEBT @28% average interest rate $400/mo minimum payments Target National Bank -$3000 $150.00 Citi Cards -$600 $50.00 Chevron Gas Card -$1700 $50.00 Tiger Direct -$250 $20 Visa -$3000 $100 $3765 Monthly Debt. 4/28/2011 WITH HAMP MODIFICATION $224,000** @ 2% x 40 Years Monthly payment: $ 678.33 +$678.33 Principal/Interest +$358 Escrow w/ Taxes +$33 Home Owners +$84 PMI $1153.33 a/mo ($3061 monthly bills after modification*) Before Modification $3375-$3765 = -390 After Modification $3375-$3061* = $314 * $3061 represents monthly bills without: groceries, gas, household supplies, car/home maintenance, income tax, SSI deductions, hygiene products, haircuts, etc. **12/16/2004 Sold $217,500 Original Purchase Price $224,000 (Current Market Value Zillow.com) $224,000 $195K – $235K -$7,000 (30-day change) UPDATED 04/28/2011

[Madd0g]

Your income does in fact qualify. When providing your your expenses make sure you have a slight positive cash flow after the loan mod. Show up to 200/month. It is a mistake to make yourself look too desolute since they will perceive you to be unable to keep the home. Contrary, make yourself look strong and stable...after they provide the loan mod.

Good luck.

[dianne]

Vadimm,

I am certain my mod. goes to 40 years, so don't give up hope. I was told I should get my final papers within the next week, and I will let you know for sure. I am GMAC and it took a long time, but once I filed complaints, I was referred to a rep. in the executive offices, and things flew through.

[rwnabuck]

You are very blessed to have received this from GMAC. I have been working with them for almost 2 years -- and they told me the investor will not extend the terms of the loan. Do you know who your investor is? All they told us is that it is a private -- and they won't go out from the 15 years which is the term of our original loan.

[dianne]

You are very blessed to have received this from GMAC. I have been working with them for almost 2 years -- and they told me the investor will not extend the terms of the loan. Do you know who your investor is? All they told us is that it is a private -- and they won't go out from the 15 years which is the term of our original loan.

Rwnabuck-It took me 2 years and it was a nightmare. One thing in my favor, was that my newly built home, was never onsite appraised, in a county with almost no building enforcement. When I found out what they appraised my home for, that kicked me out of a HAMP, I fought back with a real appraisal and home and mold inspections. The house they said was worth $362,000, and I paid $307,000 for, came back at $65,000. I then filed complaints. My loan is stretched to a full 40 more years, with a $62,000 balloon, at the end. My rate starts at 2% and ends at 4.75%. It is a Fannie Mae loan. Until I filed my complaints and was referred to the executive offices, they played horribly unfair games. They came to lock my children and myself out of our home, they gave me two fake sale dates...They lost the same documents over and over, had my income incorrect, over and over again, and even made mistakes in the permanent docs. The plus for me, was the rep. they assigned to me. She was wonderful, but you don't get one of these reps, until you are referred to their offices, because of govt. or other similar agency involvement. I feel your pain! Keep fighting and good luck!

[rwnabuck]

So your house was appraised at 65K -- and you paid over $300K. WOW. We were told that since our loan is a private investor -- that person does not want to extend our terms. Who did you file your complaints with -- someone at GMAC or outside? Thanks for your responses.

[dianne]

So your house was appraised at 65K -- and you paid over $300K. WOW. We were told that since our loan is a private investor -- that person does not want to extend our terms. Who did you file your complaints with -- someone at GMAC or outside? Thanks for your responses.

Don't waste your time filing with GMAC....You won't even know if they read it. I filed with my senators, reps., the FTC, FDIC, Attorney General....I also called them. I did the complaints on-line, and copied and pasted them into the complaint form on-line. Then I adjusted the letter, with the info. that might be specific to each agency. All of the agencies wanted, ALL of my documents, so my son scanned them into my computer, which made everything easier, but still quite time consuming. You could also contact NACA. They are busy, but do give advice and can be helpful. Most of the agencies gave GMAC 30 days to answer, and I was sent copies of their answers. The answers were full of discrepancies and I had what I needed to counter them. That's when I contacted the GMAC rep, that answered GMAC's complaints, and that was when I finally got help. It was a nightmare! But this nightmare had a happy ending.

[Madd0g]

I understand your circumstance. I have another property that will ultimately be a short sale since the loan is backed by some wall street fund. If GMAC is simply the servicer they are the messanger only and their job is to collect as much money and string you along as long as they can. Keep fighting but it might be futile.