Loan modification after NOT reaffirming

[cheekybegr]

We have waited for so long and after two foreclosure court appearences and 2 denials we have finally heard from our lender that we have been approved for a modification pending a 3 month trial period. We went through Ch7 and were able to keep our home due to loss in value. The mortgage company did not reaffim even though we signed the papers. Both loans were discharged primary and HELOC. The loan mod does not include the second loan but strangely I received an offfer from the mortgage company willing to settle for 30% of the full amount or monthly payments applied to the balance with no interest. Why are they now willing to settle? did the ch7 wipe out the heloc and they are now willing to try get anything. I am willing to pay to settle as it is a good deal but if i dont have to ........ can any one advise

[StartingOver08]

The second is out in the cold if you did not reaffirm the first or the second.

They offered you a deal because they can not collect from you - you are discharged and did not reaffirm. If they can get you to sign something then you owe them X (whatever the new agreement is). You might want to check out Relief's posts - she is working on getting her 2nd to remove the lien with only a payment of 10% of the balance. Remember, the HELOC would have to pay off your first inorder to foreclose and that is extremely unlikely (depending upon the balances of each).

With your modification of the first, the second still has their lien on your house, but really they are in a lame duck position. You would get a great benefit if you can get the HELOC to remove their lien, but I would try for a lot less than 30%! All of this is subject to your homes value - its not possible to know without all the information (current value of house, mortgage amounts, modification terms etc - and of course your information; so you are the only one that can make this decision)

[cheekybegr]

Both loans are with GMAC 1st $250K 2nd $50K they will settle the 2nd for $14K. Earlier in the year they refused to do a mod because we had no reaffirmation agreement eben though they were the ones thatwould not reaffirm. Then the new Obama plan came out now they will modify the first but the second is handled by a different dept. We want to stay in the house but are very curious in regards to the offer, when they had a chance to reaffirm they wouldnt do it no the debt is discharged they want to make an offer - if we choose not to settle and not to make payments on the second what would be the outcome?

[StartingOver08]

Pull up the posts by Relief. She is doing the same thing only her loans are with CitiMortgage.

You are in a good position because your second is small (in relation to the first). Your loans may or may not be with GMAC. GMAC is the servicer of both of your loans, the actual loan itself may have been sold to someone else. Usually, even when the loans are serviced by the same company, they are treated as totally separate loans with separate departments and the negotiations are separate. It sounds like you are paying on your second now. Is that right?

[cheekybegr]

no we stopped paying the second at the same time as the first - how do i find reliefs posts

[relief13035]

Here I am...here I am.....
DO NOT settle for 30% - you can do a lot better than that.

Write, call and fax all these places. Get your self a good hardship letter written up. Basically tell them you want to settle for 10% or nothing.

GMAC corportate office is in Horsham PA:

GMAC Mortgage Corporation
100 Witmer Road
Horsham, PA 19044

Principal Contact
Mr. Jordan Nelson (Voice of the Consumer Director)
Complaint Contact
Ms. Diana Basciano (Voice of the Consumer Supervisor)
Other Contacts
Ms. Ruth Bryan (Customer Service Advocate)
Mr Greg Everett (Prod. Manager)
Mr. Jacqueline Harvey (Prod. Mngr.)
Phones
(215) 682-3182
(610) 478-1011
(610) 770-1452
(800) 205-4622
(800) 627-0128
(800) 964-6063
(202) 785-4622
(215) 653-7660
(215) 682-1000
(215) 682-1220
(215) 682-3086 (FAX)

DO NOT give up - I emailed 26 people at CitiMortgage and got a call the very next morning. I'm a tough cookie!

[relief13035]

Here's also an email address:

GMAC - Senior VP

[email protected]