
GMAC Loan Modifications.
GMAC loan modifications are commonly used when there has been a temporary reduction in income or an increase in expenses. An effective loan modification could lower your monthly mortgage payment but qualifying for a GMAC loan modification that is really going to help you is not that easy. There are 4 types of loan modification offered, but the first two do not make much financial sense to anyone except GMAC.
- Monthly Mortgage Payment Increase: Unpaid principal balance is added to the original balance which will result in higher monthly payment.
- Maturity Date Extension: This increases the length of your loan or possibly add a balloon payment due at the maturity date of your loan.
- Change mortgage rate from variable rate to fixed interest loan.
- Mortgage Interest Rate Reduction. This option is often used as a last resort. It most likely will not increase the monthly mortgage payment.
GMAC mandates that borrowers cannot get a loan modification unless they participate in credit counseling. Upon completion of credit counseling, the counseling agency notifies GMAC Mortgage that the borrowers have met this requirement.
GMAC offers loan modifications to those who qualify for HAMP
Criteria for HAMP:
- Be the owner of, and live in, the home in question.
- Have proof that you are in financial hardship.
- Have an unpaid principal balance that is equal to or less than:
- 1 Unit: $729,750
- 2 Units: $934,200
- 3 Units: $1,129,250
- 4 Units: $1,403,400
- Have a first lien mortgage that was originated on or before January 1, 2009.
- Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
- Have a mortgage payment that is not affordable due to a financial hardship that can be documented.
Tips to Avoid Loan Modification Scams
- Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
- Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
- Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
- Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never make a mortgage payment to anyone other than your mortgage company without their approval.
As with the reports from all banks, you must stay on top of this process. There are MANY reports on the web of people having to continuously resubmit their paperwork because the bank is unable to find it. It is quite a headache, but if you wish to keep your home and stop foreclosure, then strap on your gloves and get ready for a fight.
If you are unable to qualify for a GMAC Loan Modification, or you have no interest in staying in your home, make sure you have the option of attempting a short sale. Make sure that you choose a company with a successful track record and who knows what they are doing.For more information about the process contact us today. We assist homeowners in Broward and Miami-dade Counties, especially in Hollywood, Miramar, Plantation, Pembroke Pines, Cooper City, Hallandale and Hialeah who need foreclosure help or an experienced short sale realtor.

