Loan Mod w/GMAC if not late...YET???

[FIRMMarci]

I'll keep this as short as possible.

We relocated from Durango, CO, to NM in the summer of 2007. We bought a house in NM before we sold our house outside Durango, CO. Durango's ALWAYS been a hot market, we had no doubts it would sell. It didn't. For the past 18 months we've had a 1st mortgage on our NM property (we financed 97% with a one-time principal reduction opportunity, so our payments are huge), PLUS a 1st on our CO home with GMAC, PLUS a 2nd HELOC on the CO home with the local bank. In addition to that house not selling, my husband had an accident while loading to move, resulting in his 3rd head injury, and about $10K in out-of-pocket medical expenses.

We tried renting the CO house thru a property management firm. Not only did they not find a tenant, they left the house UNlocked and the front door AJAR in April, which is heavy snow season. The CO house is now rented to a friend's son who takes great care of it. But they can't afford market rate, so we gave them a break. That leaves us short $400/month. We have cashed in retirement savings and borrowed from family to keep all our payments current. But we can't do that indefinitely.

I've written letters to both lenders (GMAC and the local bank) on the CO home explaining our situation and asking to get the interest rate reduced. I also pointed out that I WORK for a GMAC brokerage. Is this EVER done? I mean, it seems like some lenders will bend over backwards to help those that ARE delinquent, but won't work at ALL with those who've worked hard to keep things current.

I did just hear back from the local bank, and they are willing to lower the interest rate on our 2nd/HELOC to 5.5%, which is great progress.

So at this point, my question is, do you think there's ANY chance GMAC will agree to lower the interest rate on our 1st mortgage? We are not in a short-sale situation, in fact we have probably $150K equity in the CO house. But if it won't sell, that does us no good.

Any advice will be MUCH appreciated. Thanks in advance.

[Cat Damiano]

Hi FIRMMarci,

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

The modifications given are up to the investors on the loans and if yours is a FannieMae or FreddieMac backed conventional low rate loan..........they have been working with the customers that are 90+ days in default and going through foreclosure.

What is the interest rate at?
Is it fixed or adjustable?
If adjustable when is it adjusting?

[FIRMMarci]

Cat, thanks for the quick and helpful response.
It's a fixed-rate loan at 5 7/8%, which I REALIZE is great...but we're still short each month. It's frustrating that the solution seems to be to quit trying and let it get delinquent. We have great credit, and I hate to see that trashed. What I'm looking for is a short-term solution that will get the payments down enough that the rent covers them--just until we can get it sold, for WHATEVER amount.

[Cat Damiano]

You would need to contact them and see if they have any options to do that.........
1-800-850-4622 ext. 2362609