How can I get help to reduce monthly payments?

by Dalila Szostak
(Daytona Beach, FL)

We are really struggling to make payments, and we are considering having to sell the house even though it is upside down.

The only way to save our home would be to reduce the monthly payments for at least two years to a more manageable amount.

Is this possible? Can we talk directly to GMAC?

Information below:

Type of house:
Townhouse
Nice neighborhood, with swimming pool
located in Port Orange, FL
2b/ 2 1/2b
Florida room

Lender: GMAC
PMI: $150
Purchase Price: $160,000
Current price: $100,000
Purchased: 2007
Monthly payments: $1600
HOA fees: $200
ARM 5 years

Never late on payments

Husband Occupation:
Part time university employee
Full time volunteer on international endeavors.

Wife occupation:
Full time professional doctorate student abroad (Netherlands)

Expected graduation 2011 when hopefully payments will not be a problem (after finding a job for a higher education in engineering)

House- Primary and only residence

No savings
No other equity
Own two old cars

Thank you for your help.

Mortgage Loan Modification Answer:

By Mortgage Loan Modification Expert Dan North

First off, yes you can contact GMAC directly. Here is some contact information you can use:

GMAC Mortgage LLC (800) 850-4622 (800) 766-4622 (800) 799-9250 (866) 709-4744(fax)
GMAC (319) 236-5267 (866) 802-4622(collections)
2711 North Haskell Ave.,
Suite 900 Dallas, TX 75204
GMAC web site

Here is the financial analysis form

Basically what you are asking for is possible. For the Government programs your payment will be based on 31% of your gross income. Your payments will only go down so far before the lender will say no way and will just foreclose. These are permanent modifications.

There is also forbearance which lenders may be more willing to do, which would be reducing your mortgage for a number of years (in your case 2 years) and there are several ways this can be done.

Refinancing does not look like an option as you are upside down by more than you will be able to get a good deal on.

Your first option is a loan modification or forbearance and if that will not fly with your lender then going to short sale for less than the balance amount of your loan.

I can not say what your lender would do in your case with out knowing what your current gross monthly income is. Your husband may need to get full time work if he is not going to school to satisfy your lender that you are doing all possible to make your payments before they will do a modification.

If you need professional help go on line to Apply for No-Upfront Fee Hardship Loan Modification (Currently available in CA, OR & WA more states being added). Antonio will contact you and go over the specific details of your situation. There is a fee only if a modification is arranged that you approve and sign up for. If he does not think he can get you a modification he will not take the case.

I can help you out with options if you need help on what to do.