GMAC Mortgage Policies?

Guest 0.10 Dollars($)

Will GMAC renegotiate your existing loan?

Hello I have a first and second loan with GMAC. I have a fixed interest only loan that does not adjust until 2010. I bought the home for $569,000 and did not expect home values to drop. Estimated value of the home is around 480-500 K.

I am current on both loans.

I was considering forclosure and buying another less expensive home but a friend suggest I try to renegotiate the loan with GMAC.

GMAC loss mitigation told me that because my loan was not up until 2010 they would not be able to assist me and if I could not afford the payments I should like the home for sale and they would possibly negotiate a short sale.

What I need to know if I become delinquent will they renegotiate my existing loan by lowering the balance as other companies would do to avoid forclosure?

If you are reading this and do not know GMAC policies please do not guess I am looking for someone who might actually know.

Thank you for your time.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi MUCHO,

Welcome to the forum.

I have not dealt with GMAC but I think the loss-mitigation department of GMAC has given you good suggestions. You should not go for foreclosure. It will not help you in any way. It will have a huge negative effect on your credit.

I shall suggest you to go for short sale if you cannot afford the monthly payments the loss mitigation department has also suggested you.

Feel free to ask if you have any further questions.

Best of luck,
Larry

girlndebt · Joined: 02 Feb 2008 Posts: 11 5.69 Dollars($)

I must ask-is this GMAC AKA Homecomings Financial you are talking about? If it is-I dealt with them and it was not pretty. They are VERY HARD to deal with.

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

I think you should do the short sale option as Larry suggested. I wish you luck.

fireyone_02 · Joined: 20 Mar 2008 Posts: 281 2.17 Dollars($)

Agreed the short sale option is the best.

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

I never had a mortgage from them but did have a car loan, and I have to say that they were terrible to deal with. I was not a happy camper with them. I am glad to be rid of that account. goodluck, hope things work out for you.

fireyone_02 · Joined: 20 Mar 2008 Posts: 281 2.17 Dollars($)

Some places can m,ake you feel like you are lucky to get something like a loan through them. They make a person feel inferior. I had this happen through a bank a long time ago. My hubby frogot to make a deposit and a couple things bounced. I went to the bank to clear it up and they said "you shouldn't spend money you don't have." It was an honest mistake..changed banks after that. Moral of this story is if you are going to be dealing with any place for a period of time, check them out and make sure thry are worth dealing with.

Guest 0.10 Dollars($)

In response to the record number of defaults and foreclosures, many lenders have set up departments to handle loan modifications and the like in an organized if not humane way. In the last 27 years, we have been through tough times at least twice and never before have I seen anything close to this kind of pro-activity on the part of the lenders who service mortgages. The current recession is much more severe than any we've had before and will require tremendous combined effort from consumers and private industry as well as the "remedies" available from government. Sadly, GMAC is not among the lenders who understand that blood cannot be squeezed from a turnip. Furthermore, they continue to favor the shortsale solution much more than trying to work things out.

Today, I was again told that since I do not qualify for a "loan modification" because I have had no income since last August with no idea when my luck will return, my only option is to list my home on a "short-sale" basis. When I inquired whether GMAC would actually entertain writing off over $260,000 as my home is now underwater by that much (GMAC also holds my second mortgage), the Loss Mitigation Specialist stated that GMAC will consider a purchase offer for as little as 90% of CURRENT fair market value. To make sure I heard him correctly, I mirrored back "so GMAC would consider a purchase offer of $630,000 on a property on which GMAC is currently owed over $960,000?" He confirmed that I had properly grasped his meaning.

If you are considering listing your house as a shortsale, here are some things to consider:

1) How much more or less damage will your credit history sustain by doing a short-sale as opposed to rolling the dice with a foreclosure?
2) If anyone advises you that a short-sale is less damaging than a foreclosure, how can they know that when what is considered decent vs. excellent credit has been changing constantly over these last twelve months?
3) With the record number of defaults and foreclosures, how much longer will it take for a lender to force your relocation? It used to be almost five months but these days, who knows?
4) Do you expect your financial situation to improve as the economy improves or are you on a fixed income or one that will decline regardless of current events?

Many homeowners facing this situation can usually get some advice from their lender(s) but if you're with GMAC, you're on your own so plan on doing a lot of research to find the best course of action for you and your individual circumstances. Everyone wants to do what is best for everyone concerned but if you've got a "live for today, screw tomorrow" kind of lender like GMAC, you have no choice but to focus only on what is best for yourself and your family.

Best of luck to you.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Mr. VeteranBroker.

Short sale is better the foreclosure because if you face foreclosure your credit will go down and you may not buy another property in next 3 or 4 years. But short sale does not have such a huge negative effect on your credit report and even after the short sale one can get approved for a home loan within 18 months if he can improve his credit.

Now you can wait till the time the lender come and evict you but it may br too late to get yourself on your feet again.

sara · Posted: Wed May 14, 2008 4:57 am Post subject: RE: short sale considerations

Hi veteranbroker,

Very good points to consider while going for a short sale. But I'm quite surprised to see someone having problems actually giving suggestions at the same time. Actually I appreciate this.

I guess GMAC considered a purchase offer of $630,000 because the home sales market is on a decline. So, are you doing a short sale or is it that yuou have thought of other options?

Take Care

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

good information, hope you will take the advice and do well with it.

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