GMAC Loss Mitigation suggested for us to skip 3 month payments?

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

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?

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.

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

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.

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.

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!

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??

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

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 ?

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.

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

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

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!

Hi Frank,

You will have to inform the lender about your financial crisis and negotiate with him that you would only be able to pay off the dues if he modifies the loan. You will have to write a hardship letter to the lender when you request for a loan modification