Do you have a mortgage with GMAC, and if so, have they done anything to cause you to default on the loan?

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Did your mortgage company do anything illegal to make it appear that you were or are delinquent in paying your mortgage? Did they post your payment late, fail to pay your homeowner insurance, charge unwarranted late fees, sent reports to credit reporting agencies saying you were late on your payment(s). These are just a few of the tactics that a mortgage company or mortgage loan servicer might use to declare that you are in default on your loan and either foreclose or force you into bankruptcy.
I am asking this question because I think I have been victimizes by my mortgage company and I need to know if I am the only person who has experienced this abusive behaivour.

My husband and I were forced to relocate. We rented out our home that was an FHA guaranteed mortgage. The home was destroyed (literally more damage than the property is worth). We are unable to repair or rent out. We made payments for some time, but are no longer able to do so. We did not qualify for forebearance or special programs as we did not live there. We attempted to sell, even at a reduced amount and had no luck. 6 months on the market, and not one interested person. Attorney letter stated that the home is going to auction. What happens after this? If it’s auctioned for $ 10,000 but we owe $ 27,000 —does my mortgage insurance cover the balance or do I fax wage and IRS garnishments? Please do not answer if you are speculating on what will happen. I would like a response from someone who has a factual answer. I realize that foreclosure is not a responsible thing, but given our situation, there is no other option —so, you don’t have to tell me that either. Thanks!
The home was rented by advice of Midland Mortgage Company. We did not qualify for help because our income decreased. We were FORCED to relocate to seek specialized medical care for my son – thank you.
The home was destroyed due to ignorance by the renter. They paid the mortgage and made minor repairs per their contract. We made no money from it. However, they weren’t handy people. Their work to the plumbing resulted in a collapsed sewer line. The roof leaked & leaked & leaked and I was not told. I would have filed an insurance claim on that. This caused roof and raftor damage as well as wall damage inside the home (structural walls). Should I go on… In addition, after abandonment of property, I learned that the home was subject of a drug bust in which a great deal of what one would call cosmetic damage occured. Home had hidden “compartments” cut into walls. The walls now have holes all in them. The ceiling has holes as well as the law enforcement officer entered the attic and broke through in a few places. I could go on forever, but I think you get the point. Now homeowners insurance will cover this malicous damage.
This was our primary residence for 2 years. So, before we rented it out, we got permission from the mortgage company and followed all the mortgage companies guidelines for renting. Thank you Lisa
Texas — refinancing not an option due to son’s increasing medical bills. Refinancing would be a temporary solution. I still could not salvage the home for the amount of damage — yes, that’s our fault — not the mortgage companies — but unfortunate situations strike most of us unperfect people.

8 Comments
  1. Reply
    daisy
    February 15, 2011 at 7:00 pm

    i had gmac lease for a vehicle . anmd lets just say it wasn’t right or fair. call your local better business bureau also order yoor credit report and look it over. if you think they are not doing right don’t stop look into until you get answers

  2. Reply
    tomthemortgageguy
    February 15, 2011 at 7:38 pm

    This is why you need a lawyer on your side. My mortgage company held my 1st and 2nd mortgage…. they sold off our 2nd mortgage to another company and did not notify us. We sent in our $ 500 payment for our 2nd mortgage as usual. We were told by our 2nd mortgage company that we were 60 days late and that our payments were never forwarded. I contacted my attorney (through my prepaid legal membership) and within 3 days I had my money back and the lates were removed from my credit report. I also found out that any complaints such as this are not to be reconciled unless it’s at the request of an attorney….

  3. Reply
    The MortgageGuy
    February 15, 2011 at 8:24 pm

    Mortgage lenders dont arbitrarily pick people and say ,I want to ruin this guys credit, or distroy his life. Lenders always sell the loan commonly called a note to other lenders. Also the lender does not need to tell you he is selling your note. (Regardless of the Pre-Paid Lawyers opinion)The sold note is than serviced by a different lender. ALL lenders have customer service web pages or phone numbers. I suggest you contact your lender and talk to them. Honestly, the lender has more to gain by keeping you as a customer than forclosing on yet another property. Its called interest.

  4. Reply
    billy_ratsphangthong
    February 15, 2011 at 8:33 pm

    taht kinda sounds nasty to me…

  5. Reply
    WFR
    February 15, 2011 at 8:50 pm

    Cannot be answered without knowing what state and if you have ever refinanced.

    I can answer the mortgage insurance question. No, it covers the lender and not you. That does however make it more unlikely that they would do anything about a shortage, but whether they can or not depends on where you are and if it’s purchase money or not.

    Edit – Response to Mary B
    The only person on here that is clueless is MARY B. She does not live where I am and has no idea what the law is. In California they get 1 bite of the apple. If they foreclose on a purchase money loan, they CANNOT seek a deficiency Judgement. It is the same in other states as well. Mary’s long list of ridiculous “credentials” just shows how desperate she wants to be believed no matter how idiotic her commentary is.

    Mary does not accept emails so I can’t send her the california civil code so she can stop making these ridiculous accertions; but in summary.

    The majority of California foreclosures are non-judicial. There is no possibility of a deficiency judgment in a CA non-judicial foreclosure. CA Civil Code 2924 has specifics.

    If a lender wanted to pursue a deficiency judgement, they need to do a judicial foreclosure. The lender may not seek a deficiency for a foreclosure on an owner-occupied 1-4 unit property if the loan was a purchase money loan.

    Check to see if Texas is the same.

  6. Reply
    Mary B
    February 15, 2011 at 9:31 pm

    No one is forced to relocate…that is always a choice.

    FHA mortgage insurance DOES NOT protect you….it protects the lender and gets dropped if you have more than 20% equity in the home.

    If the home got destroyed because you violated the terms of your mortgage and rented it out….whose fault is that? It certainly isn’t the lenders….that is YOUR fault.

    When your home is sold, the lender will get a deficiency judgement against you for what the home didn’t pay of the principle.

    A judgement can be renewed every 10 years…forever, if you don’t pay the balance.

    There are alot of unknowledgeable people on Y!A that will tell you that banks don’t seek deficiency judgements…but I am here to tell you that THEY DO and they do it often. The only time they don’t seek one, is for fractional amounts that would cost more to seek the remedy than they would collect.

    That is why you didn’t qualify for any of the programs…b/c you violated the terms of your mortgage by renting the place out.

  7. Reply
    acermill
    February 15, 2011 at 9:52 pm

    There is no insurance which will ‘cover’ your payments when you do not make them as agreed. FHA guarantee covers the lender, not you. Since you are defaulting, FHA will make the lender whole and cover your deficiency to the lender. Now it’s FHA which is out the money you don’t want to pay.

    Your benevolent Uncle Sam is there when you need him, but he does NOT like it at all when you do not pay him back as you promised you would. Your Uncle gets mean about it and takes you to court for a judgment because he had to pay off what YOU didn’t pay off.

    So now you’re going to be dealing with a court situation with your loving Uncle. Understand what happens now ?

  8. Reply
    Lisa L
    February 15, 2011 at 10:23 pm

    Why didn’t your Home Owner’s insurance pay if house was destroyed? Was it destroyed by renters or an act of God? If you lived in the home for one year as your primary residence, there is nothing against FHA guidelines that you can’t use it as investment property. You just can’t get another FHA loan. Depending on when you bought the house, mortgage insurance drops off when your LTV gets to 78% on an FHA loan, not 80%. And as some others have stated, mortgage insurance protects the lender, not the borrower.

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