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GMAC suddenly agreed to a Trial Period Loan MOD?

Out of nowhere GMAC tells me I can do a 3 month loan Mod...pay $2189/month and they wont foreclose they will revisit the Loan in 90 days to see if I am a candidate for a Long term Loan mod...I feel like they are going to take the $2189/month and still foreclose....I asked the rep if a Sheriff sale date was set and he said Yes April 12th....which is Easter Sunday I believe....can anyone give me advice
  • March 10 2009 - US
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Answers (13)

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josh

  • November 08 2012
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Jim,
Read the agreement of your adjustable rate mortgage offer, look for these words that I am transcribing from a GMAC modification offer.

7. The interest rate the Borrower is required to pay at the first change date will not be greater than 13.5000% or less than 0.0000%. Thereafter, the interest rate will never be increased or decreased on any single Change date (every 6 months) by more than one percentage points (1%) from the rate of interest the Borrower has been paying in the preceeding six months. The interest rate will never be greater than 13.5000%.

Get an amortization caculator, and tell me Jim, will you be able to afford that, or spend a few grand on an attorney to save a couple hundred grand? 

I suggest finding an attorney in your area doing loan modifications, begin the process and drag out negotiations till the end of the year or until you get an offer equal to the FEDS new guidelines.

  • March 13 2009
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You can afford what you can afford! 
  • March 12 2009
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They just told me the sale date is April 15th and the $2189/month is what I can afford...there is no way...then if I show them too many expenses.....they wont approve me for anything....i feel like I am in a catch 22..thx
  • March 12 2009
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Glenn...READ THE GUIDELINES

1st servicers can start modifying loans immeadiately..they don't have to wait til the end of the year.  The rate modification is permenant unless it is below current market rates. 

You would have known that had you done your homework!

Neither of us know what is being offered to our friend in Jersey..you may want to pay attention to how Justin has been answering questions rather than selling fear!

  • March 11 2009
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Andrew,
I am offended by your comment suggesting I am not doing my homework because what I have written is clear, you are making assumptions and suggesting that I need to do homework, which is probably true, if I'm not doing homework, I'm not in the know.

Do you know what GMAC has offered our friend in Jersey?
Do the caps of his offer fall within the New guidelines under HAMP?
Is $2189.00 31% of Jim's Household income?

Has GMAC enrolled in HAMP and adhering to the guidelines. 
<personal opinion> I doubt it.

The "Trial Period" is 3 months under HAMP, not five years. Five years is a teaser rate and puts the borrower past the enrollment window offered by the HAMP program. The interest rate cap in the modification if higher than HAMP will become the interest rate for for the full term of the loan, so JerseyJim might want to check the CAP in the ARM that is being offered.

Good Luck Jim!
  • March 11 2009
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Glenn,
Stop guessing about things and do some homework.....The rate has caps and to be honest they are very attractive terms.

Justin,

Nice answer and you just got a brownie point on being legit...at least in my book.....for what it's worth...which is not much..It is refreshing to have a loan mod guy actually give a straight answer...
  • March 11 2009
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If they gave you an option which is called a stip to mod it is very common. They want to see that you can make on time payments before they give a more permanent mod usually which will be for 2,3,4, or 5 years. But you should accept it because it will stop your sale date they should send you the docs in the mail you'll have to get them notorized and follow the instructions that are given. after you send them back to the lender with the first payment im guessing they wanted call back a few days after to make sure the funds were posted and the sale date was stopped.
  • March 11 2009
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Andrew,

That's my point, lenders do not have to sign up on the federal program until the end of the year, by law. So if they can modify you on their terms, which would benefit them in the long run, I would see a reason for them to "offer" modification.

Additionally that 5 year low interest loan will put you past the window of opportunity for the federal modification program, and I'm guessing that they have probably tailored the modification offer to not allow modification within the 5 years or to sue them for Predatory Lending which was rampant within the last 5-7 years.

To anyone reading this, read the modification offer in detail, the CAP on the ARM is one of the things I would be interested in, probably not the same as what the federal guidelines are and should be a red flag for you.

Personally, I would make the investment of hiring an attorney to represent me to protect my interest in the process of modification to ensure that I get the best modification available.

  • March 11 2009
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Glen that is not true if it is under the obama modification...
  • March 11 2009
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I am seeing lenders offering modifications that are Adjustable Rate Mortgages that have low rate for the first 5 years, and then what?

By signing the modification you are waiving any rights you have to litigation against the lender, if there were violations in your orignal loan.
Depending on the modification, I suggest reading it very carefully.

Hiring an attorney is probably the smartest thing that you can do if you are facing losing your house, your investment, and your security.
  • March 11 2009
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There are not many originators with modification experience on these forums and none can give you accurate legal advice with limited details. 
If you do not understand the details of the offer on the paperwork you received you may consider retaining a lawyer.

The why of the offer could be due to a number of factors.  The structure of your request, the structure of why your are in default, your financial structure, current legislation passed, current investor (not servicer who sends you statements) guidelines, etc.

I hope this helps.
  • March 10 2009
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You may be one of the first with an Obama Mod....go to page 9
  • March 10 2009
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