Just Starting

[mickamack69]

First, I want to thank everyone on this site for all the information I have collected and utilized! I never would have been able to start this process without everyone of you. Thank you for your stories, experiences, hope, and support system. I went into every forum and looked at every piece of info I could find to support my own loan modification. But, I know that if I can't do it myself there are other options, like the lawyers willing to take my case.
I would like to take responsibility for my mistakes in the adjusting rate of my loan, as I knew before it started to adjust. But, I am responsible too, for my ignorance of the whole loan process. And just like my broker and the mortgage company took advantage of that ignorance, I would like to take advantage of any opportunity I have to correct the situation I am in.
I refinanced with MLN USA,4/2006, the mortgage lender for people with bad credit, who went bankrupt '07. GMAC has had my loan for close to 2yrs. a 2/38 ARM 40 yr. @ 8.457% for $261,000. Good faith estimate said 7.6%, but when I got to the table....Anyway, started to adjust in June...by 12/01 will be 9.625%. Not as bad as some, but too much. So, I stared at this site for a month before I started doing what you said to do. Hardship letter and financial statement, which gave me the courage and the words to say when I finally called loss mitigation. GMAC loss mitigation 800-850-4622 x 2362609. I was denied refinancing twice in 6 mos. and was actually recommended to call loan modification the last time by the loan agent,10/21.
Because of all your encouragement, I did call and she actually referred my loan to the loan modification dept.. Now, just have to wait til someone gets back to me, 7-10 days. I just feel better having made the call and gave me some resolve that I can do this, I can really do this.
I will continue to let you know what happens, every step of the way...because, I can not tell you how much all of you have helped me.

[HobieCat]

I also have GMAC loan. Is your loan past due?

[taram]

I have a GMAC 2nd and I am not late they wouldnt even look at it . its a high intrest rate. along with my 1st HSBC. I could get any where . I hired an attorney to help.

[mickamack69]

hobiecat, No, I am not late with payment, but will be if interest keeps adjusting. I was late in 2007 and worked out a forebearance plan with them and that is why I can not refinance.

[mickamack69]

taram, I was interested in a lawyer to help me, but the fee $ 2995 is stopping me. Do you think they can really help? It must be worth it if you paid$$. Could you let me know as I have some questions...

[mickamack69]

Hey taram, could you let me know a little about the process you went through with GMAC...Did they refer it to loan mod dept?

[taram]

Yes, it is expensive but if you think about it , your not making a mortgage payment while this is going on. They go through the nogatiations. you put all your payments into a savings account and hold on to them. YEs I called the loss mid. department twice and they basically said its there policy not to do anything till the loan is delq. and since Im not they wont even take the call any further. and when I asked so I need to default and he wouldnt comment. the help of a lawyer from what I read and talking to the couselor is that you get a better loan mods. It is alot of waiting .. you hear nothing for the first 20-30 days. I tryied on my own... we are just making ends meet with utitlities and food, car and insuranc .. we suffured a loss income and though we are are not late on either mortgage and my arm doesnt go up till aug 09. second is high at 14 % and the house is 170 over equity. but we started this early because we know the time will be coimg that we cant not afford these mortgages and we do not want to walk away we love our house and we want our kids to grow up here. Its scary to pay some one but at least you have someone fighting for you and they know what you can afford and will get that. ( hope that helps)

[HobieCat]

Taram, it might not be as expensive as I thought would be hiring a lawyer like you said that I would not be making a mortgage payment ($2890/mo!).

How many points did it affect you on your credit score since you are not making your mortgage payments?

[taram]

right .. they told me that it could have a 30 late but if you get the mortgage as low as it can you wont have to refiance for years. and it wont be an issue. But with the lawyer they said most likely the will correct all the lates.

[HobieCat]

Taram, it is great that the lawyer would be able to work on to help your credit score as well. Do you know how many points is taken out on your credit score because of the 30-day late?

[taram]

To be honest I am not sure who much it will effect the score .. but again if you get the loan down and intrest rate then you wont need to refiance and the score really doent matter. My Oct was paid .. it will be Novs. that will go into the lates ... Hopefully I will hear something in the few weeks. The lenders havent responded to the Lawyer yet. ( techinally Im not late yet) so the lender is being slow...

[mickamack69]

taram, i heard through this site that when you are going through the loan mod process that they cant report to credit agency for 60 days...so, you are saying that you got a lawyer in Oct. using your Nov. mort payment? And while the process is on, you save your payments. I would do that...Did you get a lawyer through this site or someone close to your area? Are you going to debt counselor? Will that help you? I've been thinking about that. I'm going to call the lawyer today. seriously, I don't care about my credit score...it is the debt and trying to repay that scares me...but, being late on my payment is definitely frightening. Did the lawyer say how long it would take to work out?

[taram]

Yes, I used Nov. payment. They told me it would take 30 plus days before I hear anything. Lenders are inundated with these loan mods. It is very scary not to make a payment...you dont pay the lawyer till after you have been approved by the underwriter. I am still scared but I know in the long run its going to help me. Its a long journey so to speak. As my counslor said "You are not the only client who feels as if they are a long tail *** in a room full of rocking chairs…The waiting game is unfortunately strategic" I got an email yesterday stay that they are waiting for my lenders response now. its been 22 days. But again I am not late yet so no calls from the lender. I opened a savings account and put the paymnets in there. I has a biweekly withdrawl so I was actually a month ahead so Octobers was already paid when I started this process. so I used the extra payment to pay the lawyer and now saving Novs. payment. I was told you might have to make up the one payment and maybe the lates. it all depends on the "work out" my issue was not that I couldnt try on my own with the lenders but my 1st said they could freeze the arm rate for 6 mos and its a 40 yr. and then reevalute, second GMAC wouldnt even discuss anything because Im not late, I am making payments and My house is over equity. I dont think I could get anything as good as I need myself . with the lawyer they are looking at lowering rate, and principle, and writing off the second. It could take 30-60 days. well the lates are good to know . thanks

[mickamack69]

Taram, OK, I got it...that is crazy, freeze the rate for 6 mos...What at 9.6% thats what my rate will be next month and then to freeze it for 6 mo. it won't adjust for another 6 mo., so what kind of deal is that? crazy. I am going to call the lawyer today. Thanks for replying so quickly...

[taram]

good luck.. I heard from my Lawyer yesterday. They sent letters of authorization to represent me to the lenders and sending my hardship letter today. So now its another waiting game .. its been 25 days