Brief outline of the sort of things we had to deal with in seeking a mortgage modification from GMAC Mortgage. Might convert to an actual article-type thing later.
- GMAC Mortgage failed to perform any kind of on-site appraisal before mortgaging our $300,000+home. The home later showed severe defects including ample code violations. Failed state building inspection. Had they conducted an appraisal, they would have realized that the property was actually an igloo made of lard, and thus not a stable investment.
- Domestic violence case against my father caused several missed payments. By the time my mother’s income was stable enough to make another payment, GMAC refused to accept any payments, and had previously refused to accept a partial payment. They later issued a letter of apology, stating that they were unaware that money and meat were not the same thing. They assumed that our cash had gone moldy since the payment due-date.
- GMAC granted a “Forbearance” during this time. They almost immediately canceled the forbearance, claiming that our payments had bounced. They did- because GMAC tried to take out two payments at once. Their credit card branch denies applicants who don’t have twice the income listed on the credit application.
- The continually lost documents which we faxed to them, requesting the same items over and over again. We cannot be too hard on them for this though, probably the office associates responsible for handling incoming faxes have advanced stage Parkinson’s disease.
- They intimidated my mother with “Tentative Sale Dates”. Only the court can set a sale date. Which isn’t so bad- I hear that the guys at Bank of America use “Tentative Execution Dates”, instead.
- They continually miscalculated our mortgage modification paperwork, further delaying the process. GMAC public service announcement: Contrary to popular belief, “rounding up” actually means “increase by 25%”
- They used an “in-house” appraisal method to value our home at over $360,000. We challenged this with a local, on-site appraisal, which showed a value of roughly $150,000- assuming the home was in good condition. Factoring in “cost-to-cure” returned a value closer to $80,000. GMAC did not trust our appraisal, but offered no information to support their own appraisal, claiming we were not entitled to a validation. Our local PVA had no problem trusting the local appraisal. Note, the appraisal was accompanied by a complete inspection as well by a licensed home inspector. Surprisingly, they were unwilling to buy the home from us at $360K.
- They attempted to lock us out of our home after a one-week visit with family, even though it was clear that the home had not been abandoned. On another occasion they tried to distract us while we were at the library by placing a Wacky Inflatable Arm-Flailing Tube-Man in the parking lot, in hopes that we’d be gone long enough to claim the property was derelict.
- They have since approved a “trial-modification” based on a value of $200,000 (still too high, but we feared that they would foreclose if we did not accept the offer). The terms of the trial agreement require us to use paper coupons with each of the three trial payments. They state that they may deny our permanent modification if the payments are sent too late or too early. We also have to correctly guess the number of moth eggs in a jar of all-purpose flour.