GMAC Loan Modification possible for me?

[mast]

Here is the story,


I did a loan modification almost 2 years ago with Homecomings, basically they lowered the interest rate from 7 percent to 3.5. The did not change the terms of my original loan which was and Interest Only 5 year ARM.

When they modded my loan they extended the arm for another 5 years. So now two years into the arm I am concerned that after the arm is up I will not be able to afford my house. What are my options at this point?

[SMinGA]

At first guess, I would think you could call GMAC & ask. But first you may want to consider that since you can't do interest only forever, are you able to afford any loan payment that includes a principal payment?

Have you done any math yourself? If your loan was converted to a standard principal + interest payment, what would you need your payment to be in order to be affordable? Is that possible with any modification?

[mast]

At first guess, I would think you could call GMAC & ask. But first you may want to consider that since you can't do interest only forever, are you able to afford any loan payment that includes a principal payment?

Have you done any math yourself? If your loan was converted to a standard principal + interest payment, what would you need your payment to be in order to be affordable? Is that possible with any modification?

Actually the math is kind of a problem, the house if on my name alone. I have been with a partner for 19 years but not married. If I went by my income alone I could not afford the house or a car payment, but my significant other pays for everything. I do work, just do not make enough money...

[SMinGA]

That could make it hard to get a modification - since the other household income would probably not be considered.

What I was getting at in terms of doing the math is figuring out if its possible, based on your principal owed, to get the payment permanently where you need it to be. Depending on what you owe and what your target mortgage payment amount is - you need to figure out if this is a home you can realistically afford to keep long term.

For example, say you're paying now about $1605/mo IO on a principal of $500k and you want that to be amortized over 30 years @ a fixed rate for a payment of $2000... Such a payment would not be realistic. $500k @ 3.85% over 30 yrs would be $2344. (And I'm guessing 3.85% would not be possible for a permanent rate. Most mods seem to cap around 4.5-5% though they may start lower and step up gradually.)