GMAC / Ditech

[cadent49]

I worked through Hope Now and have been proposed a Loan Modification by GMAC, my 1^st is $600k, my interest only payment is $3,200, they offered $2,540 for 90 days. I also have a 2^nd with GMAC for $110k, payment is $1,015, they offered $850. Due to a loss of income of 25% I can only afford $2,500 total. Currently we are 90 days past due, but I have not been served a foreclosure notice, even though the lender letters say they have initiated foreclosure. We need help, we want to stay in this home and would like to try to qualify for “the hope for homeowners act”, but have no clue on how to proceed.

[Moe Bedard]

Hi cadent49,

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

For the H4H program you would need to first see if the investor on the second lien on the property would release the lien on the property and extinguish........in order to qualify for the H4H there can only be one lien on the property.

If the modification given is too high for you.............you would need to see what other options the investor on your loans would have.........

Call GMAC Loss Mitigation to see.........
1-800-799-9250

[cadent49]

Thanks ***, I really appreciate what you are doing here for all of us going through this terrible time.

When I last spoke to GMAC they gave until 10/26 to sign and accept their 1st mortgage modification, I told them I can not afford the 2nd and they told me that I had to work with the people handling the 2nd separately. I was never contacted verbally by the folks handling the 2nd, they just mailed me a seperate modification proposal. The people from the 1st loan told me they would contact the people handling the 2ndon my behalf, but I have not heard back in over a week. Should I go after them?

[Moe Bedard]

call the number I posted above to see if they can give you an update on contacting your second lien............

[cadent49]

Recall

I just re-sent it and t went through, he is apparently out of the office today. His auto reply contained the name and e-mail of a person to contact in his absense, so I forwarded my letter to her.

[cadent49]

I received confirmation that my e-mail was received and should hear back from someone within 48 hours.

For those that worked out their modifications, what happened to your credit? Were the negative items / lates removed?

[RudyJay]

cadent

I was current on my 1st and late on my 2nd.. my rating was affected by the late on the 2nd.. My thoughts on the topic is ... I have a few years to bring up the rating for refi

[cadent49]

GMAC came back with an offer, although I believe it is not a good one. Based on the financials from Hope Now, they offered me a payment reduction for a 90 trial period. My 1st is $3,187, and they offered $2,540. My second is $1,015, and offered $845. They said I must make on time payments for 90 days and then they will consider making it permanent. Here is the kicker, they are not offering a principle reduction. On the 1st, they are willing to lock in the payment for 5 years with no negative equity, I calculated the effective rate at about 5.1%. On the 2nd they want to extend it by 10 years with rate reduction, that’s an extra $100k in interest! Considering I am upside down about $300k based on the current market, I don't see where it makes sense. I believe I would never recover from this negative equity situation. Any thoughts?

[Moe Bedard]

The modifications given are up to the investors on the loans.......
the investors still are not doing principle reductions on the firsts............some are on seconds but not significant amounts and they have not been participating in the H4H program yet either.............however, with the H4H program you can have a previous modification..................

[cadent49]

How can I get in the H4H program?

[Moe Bedard]

H4H is an FHA refinance but you can not apply with the second lien..........
For the H4H program you would need to first see if the investor on the second lien on the property would release the lien on the property and extinguish it........in order to qualify for the H4H there can only be one lien on the property.

[cadent49]

They have not served me with any foreclosure notices, and have not been getting calls from their collection department since I told them I was working with their loss mitigation depatment. What does that mean to me? How much time do I have left? Currently I am 3 payments behind.

[Moe Bedard]

What it means is that they have made a modification offer for the next 90 days and you would need to contact them and ask when the payment begins unless they have already told you...............if you do not accept the offer and do not make payments..........they most likely at that time will accellerate the foreclosure process and you would receive a foreclosure sale date and it will follow the timeline according to your state.

[cadent49]

How long is it in California?

[Moe Bedard]

California Foreclosure Law

[cadent49]

Thanks for the info and support. I am cautiously optimistic, I have a very nice and caring rep from GMAC that I have been in contact with, however playing phone tag with her has been unnerving. Jen comes across as a caring and patient lady, and my hope is that some progress is being made. With all of these stories in the news I am hopeful it will have a positive effect for all of us.

How can I find out who the investor is on my loans?

Will the rep know, or even tell me?

I haven't been served, or told I am in foreclosure. Are they required to serve you before a "countdown" begins?

If I make payments on a 1^st mortgage, can a lender foreclose with a 2^nd?

Even if it is the same lender / servicing company?

[Moe Bedard]

You can ask who the investor is......but the investor hired them to service the loan and they really don't have to give that information out because the investor will not deal directly with customers........on occasion you will talk with someone who will tell you.................and if you are served foreclosure papers it will be listed on there too.

Whatever the timeline is they will follow............it should be outlined in the link I provided above.............

A second can buy out the first lien and foreclose if you are in default on a second but not the first or it can become a collection............in California if the loans are purchase money loans you may have other recourse as their are very different laws in place for deficiencies.........you would need to check with an attorney familiar with the foreclosure laws of California and deficiencies to see what the options would be...........or look in the walk away section of the forum, there are alot of threads regarding California foreclosure laws.........

If it is the same servicer it wouldn't necessarily be the same investor on the loans as they would be different product pools..........

[cadent49]

Well, I finally got through to Jen. Last night I wrote to Javid and she contacted me right away this morning. She said they would take a “fresh look” at the previous modification done by the loss mitigation department. When I called Hope Now a few months ago we worked out a budget over the phone, and some of the figures were off and Jen said she wanted an updated budget. My question is the following; what are they looking for? If I show too many expenses (i.e. an RV, cable, internet, etc), can they nit pick things? I don’t want to show too much of a surplus, and certainly not enough to service the debt. My thinking is that I need to show a short fall so they would consider lowering my payments and principle. What is the best strategy? Should I give them everything?

[Moe Bedard]

If we new exactly what they were looking we wouldn't have any members get denied these modifications...........which would be nice.........
The best thing that you can do is to go over your financials with your contact person at GMAC.........and ask lead in questions like........do I need to go off of gross or net income..........do you take into consideration all expenses...........(some only calculate up to a certain amount on credit card debt) and let her help you.

[cadent49]

After going back and forth with GMAC I'm not able to get a principle reduction or qualify for any of the "new" programs. GMAC is only willing to reduce my payments from $3,200 on the 1st to $2,550 for five years, and reduce the 2nd payment from $1,015 to $845 by extending it by 10 YEARS!! Do they think I'm stupid, or are they stupid? I know it's not their fault, but I'm upside down $200k to $300k, an amount I'll never be able to overcome. If they won't work with me I might be better off walking away. My income is down more than 30%, and I know I'm lucky to have a job and we want to keep our house, but what can I do? I will try another e-mail to Javid tonight, but it seems as though they don't want to do it.

With all these new programs out there you would think they should work with me. I think it’s time to get an attorney, I think I need to have a forensic analysis done on my loan docs. Can some recommend an attorney in Southern California they have had a good experience with?

[cadent49]

GMAC indicated they would consider a short sale, but there are over 50 properties in my immediate area listed from $350k to $450k! I owe over $710k. I don't think a short sale would work. If they are willing to consider a short sale, why wouldn't they consider a quick fix un der the H4H program or another similar program? Either way they stand to loose.

Again, I know it's not their fault, but they are in this mess with me. It would serve both our interests to resolve this!!

[Moe Bedard]

because the investors do not think the way we think about their losses.

[cadent49]

I am being offered a 60 day trial period in order to receive a "permanent modification". Is this a customary practice? As of the beginning of this month I am now five months behind and my income is 30% less than it was at the beginning of this year! I know I’m one of the “lucky ones” that still have a job, but I am unsure how to proceed.

I rejected the first offer, made a request for a review and got it. I owe $600k on the 1st, and 100k on the 2nd. On the 1st I have a five year fixed interest only @ 6.375%, payment is just under $3,200. The 2nd is a conventional 20 year @ 9.75%, payment is $1,050. The offer is an interest only amendment to the 1st to $1,700 a month for five years, about 3.4% apr by my calculations. No reduction in principle, but a waiver of back past due fees. The 2nd is a ten year extension, same rate, thereby lowering the payment to $850, past due amounts are being added to the amount owed. Another thing to consider, the house is currently worth about $475k!

I have recently been served with a NOD and the clock is ticking. Good deal, or bad deal? We love our house and don’t want to lose it, but I don’t want to make an emotional decision. I have until the end of the month to send the first payment and sign the agreement. I would appreciate any advise.

[Moe Bedard]

Is this the GMAC loan?

[cadent49]

Yes, both the 1st and 2nd are with GMAC. It is thanks to you and this forum that I was able to get this far. Not to mention Javid, and the people that work for him.