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67siia · Joined: 20 May 2009 Posts: 1 2.57 Dollars($)

We applied for a loan modification with GMAC. Yesterday, we received a call to inform us that our application was denied. The issue is that we are not late on our mortgage payment, we simply are overextended with our credit; for the last few years, we have been depended on our savings, tax returns, 401K early withdrawals, home equity loans and advances from credit cards to maintaining our mortgage current and our minimal living expenses. GMAC Loss Mitigation Representative recommended that we not to make the next three month mortgage payments and then re apply for a loan modification. He further explained that our credit will not be affected and GMAC would not take any action for foreclosure and any collections calls we may received should be directed to the Loss Mitigation department. Is this accurate?

jameshogg · Posted: Wed May 20, 2009 7:26 pm Post subject:

Hi siia,

Generally lenders accept the request for a loan modification only when you are delinquent on your mortgage payments. When people are 1-2 months late on their mortgage payments, they start applying for loan modification. If you are late on your mortgage payments for 3 or more months, then the lender may start the foreclosure process.

Thanks

Posted: Wed May 20, 2009 9:26 pm Post subject:

jameshogg, thanks for the reply. So, I am two months late, I should be able to re apply for a loan modification without any major consequences?

Posted: Mon May 25, 2009 3:54 am Post subject:

You may wish to research state law. Many of the lobbying groups succeeded in getting cookie-cutter laws passed in many states. A typical provisions prohibits lenders/brokers from suggesting borrowers miss payments.

If there is a similar law in your state, it may give you a leg up in continuing negotiations with GMAC. However it turns out, it is really dumb for anyone knowledgeable in the lending industry to suggest that you tank your credit at least without a string of caveats.

jameshogg · Posted: Tue May 26, 2009 12:38 am Post subject:

Hi Guest,

As you are already delinquent on your mortgage payments, you can definitely apply for a loan modification again. However, you should note that it is the discretion of the lender whether he would grant your request or not.

Thanks

Guest

I JUST GOT APPROVED FOR MY LOAN MODIFICATION. I APPLIED IN FEBRUARY AND THEY SAID I WAS DENIED ONE DAY AND SAID I NEEDED TO SEND IN MORE PAPER WORK THE NEXT TIME, AFTER HUNDREDS OF CALLS TO GMAC AND COLLECTION CALLS FROM G.M.A.C. I STOOD MY GROUND AND NOW IN JUNE I RECEIVED AN APPROVAL BY FEDEX THEY LOWERED THE AMOUNT I OWE ON THE HOUSE, MY INTEREST RATE AND MY MONTHLY PAYMENT !!!! JUST STICK IT OUT PLAY HARD BALL I THINK THEY TRY TO SEE IF YOUR SERIOUS OR IF YOU WILL GIVE IN AND PAY YOUR MORTGAGE.

Guest

GMAC loss mitigation is their own worst enemy. I lost my job for a couple of months and called them to see if they could do anything... they couldn't b/c we were up to date on our mortgage.

So I missed a payment and called them. They sent me paperwork for me to fill out (hardship statement, etc.) which I faxed back. I heard nothing for two weeks, so called them to get an update and was told it takes up to 60 days to get an answer, etc.... well I call back 60 days later and find out they never got my fax! Yeah right.

So I re-fax everything in and call back to confirm they got it... well NOW it is going to be a while for htem to reveiw, etc.

The same thing has happened a couple of times now. I send in what they request, call them to confirm and then get a letter in the mail weeks later saying I am still delinquent. I call them and they tell me I need something else (tax return, 4506T, another hardship letter) to get a decision. Of course they have no answer as to why they never call you to tell you what you need.

So I am two months behind on my mortgage and now have nearly $1000 in late fees. I think they string you out for two reasons... one is that they will see if you are serious and to tack on late fees that wll just go on the end of your mortgage.

They suck.

Guest

GMAC has posted the Loss Mitigation form in their website. It is best to download it and send the whole thing with all the supporting documentation required. Then, mail it by Priority Mail with SIGNATURE REQUIRED (or use FedEx or another courier company) to ensure that they don't claim they did not get it. Make sure you keep copies of everything.

In any case, I think it is best to use an attorney. The $1k to $2k fee may be worthwhile as they handle lots of these cases and they know the ins and outs of the process.

Good luck!

Guest

I have been sending GMAC paperwork for about 4 months until last week they denied my modification. I am up to date with my mortgage but do not make enough money to cover the mortgage. my payment is now getting increased due to an increase in taxes. I don't know what to do!! should i be late and then re-apply? should I get an attorney involved? How can I make this work. any advice??

smithsussane · Posted: Thu Jul 30, 2009 9:38 pm Post subject:

Hi Serge!

Welcome to forums!

You can re-apply for loan modification without being late on your mortgage payments and check out what your lender has to say. You can take the help of a loss mitigation expert who can deal with your lender and negotiate with him for the deal.

Feel free to ask if you've further queries.

Sussane

Guest

i received a workout plan from gmac.
I work overtime in order to make my mortgage payments.
My monthly income includes overtime thats not guaranteed. Should i exclude it or state it in my hardship letter showing that it cuts my monthly
gross to half of what my actual pay is ?

adonis · Posted: Sun Aug 09, 2009 11:54 pm Post subject:

Hey Bart,

I think you should include your overtime payments while you write the hardship letter. You should also mention the fact that the overtime is not guaranteed. I think the lender would consider this fact while giving you a modification plan.

Guest

How does loss mitigation treat a morgage that has a second or equity line with another bank?

smithsussane · Posted: Tue Aug 11, 2009 10:00 pm Post subject:

Hi cookieman!

Welcome to forums!

You will have to apply for a loan modification with the second bank separately. It would depend upon the second bank's discretion whether or not he would accept your loan modification request. The first bank will not deal with your second lender.

Feel free to ask if you've further queries.

Sussane

Guest

Hi. Our $$$ problems began when we bought a new house but couldn't sell our condo. We faithfully paid both mortgages for a year while the condo sat empty on the market, the next year we rented it & still lost $400/mo . We (still) pay utils for both houses. The 1st post (67siia) is a perfect description of how we've been getting-by. Renters gone & I can't pay mort on the condo now (it's BofA). We're praying 4 a short-sale. Primary residence mort is GMAC. Can someone explain GMAC's 31% debt to income formula used for mort-modification? I hear conflicting info. Either 1. we need to show we're not financially hopeless & worth the help, or 2. we need to show we'll lose the house without a modification. Very confusing. Thanks everyone!

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