GMAC Mortgage Modification Tips

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GMAC offers many programs for borrowers having trouble with monthly payments, including the US governments Making Home Affordable (HAMP) Program. I have boiled this article down to what I feel to be the 3 most important tips to a successful loan modification with GMAC Mortgage.

1. Hardship Letter - This step is often overlooked by the average homeowner and can result in getting your loan modification denied before it ever even gets a chance to be reviewed. Common reasons for denial based on hardship are temporary hardships, excessive unsecured debt obligations, and investment related hardships. Your hardship letter should be as specific as possible complete with dates and outcomes. If you are doing all this work you will want to make sure the review is not denied right away based on your hardship.

2. Documents - Be prepared to send paperwork, sometimes the same document three or four times. There is no point in questioning why or trying to tell them that you already sent exactly what they are asking for. It doesn't matter, just send it again. It's also a good idea to take the initiative and fax them updated paystubs every couple weeks, whether they ask for them or not. Always try to think ahead and give them what they are asking for ahead of time. There is nothing worse than finding that the loan modification review has been closed for failure to timely update documents.

3. Follow Up - This is by far the most important step to success with GMAC. You should be calling for status updates at least once a week, twice a week is better and sometimes necessary at certain stages of the loan modification process. With every call you should confirm the total past due balance, where in the foreclosure process the loan is, and if any documents are being requested. You can't expect to make incredible progress with every call but its necessary to avoid getting lost in the mix of thousands of GMAC loans in the modification process with you.

Some of the most shocking loan modifications have come from GMAC Mortgage loans lately. Just like most major lenders they are swamped with loan modification requests and forced to follow strict guidelines only based on your household financials. Don't let the GMAC guidelines become a cause of frustration, try to use them to your advantage and you just might end up saving a lot of money on your mortgage payments.

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Home loan modifications are free. GMAC acts as a responsible mortgage lender and is happy to assist homeowners who need a more affordable monthly loan payment. This help is, and always has been and will be, free. Be on the lookout for mortgage foreclosure, refinancing, and modification plans which charge fees. Mortgage lenders and banks who are truly part of Obamas stimulus plan will never charge for a home loan modification, as it is against the rules of the program.

Here are some conditions for GMAC mortgage modification;

- The home is your primary residence. This plan will not help homeowners with a second home or investment property.

- You are in foreclosure, bankruptcy, at risk of defaulting on your mortgage, or are behind on your payments.

- The remaining principal balance on the home loan is less than $729,500. The limits for this may be higher if the mortgage is for a multi unit owner occupied building.

- Your income must be verified, regardless of how much you make, to ensure you will be able to make the new monthly mortgage payment.