GMAC Mortgage Loan Modification

GMAC Mortgage is a leading mortgage originator and servicer with over 3 million customers throughout the U.S. Although it offers loans to most brackets, its biggest draw in recent years has been the sub-prime mortgages designed for less-than-ideal borrowers, and subsequently, mortgage assistance programs to help these customers avoid foreclosure.

One of the first steps the bank has taken is the GMAC Loan Modification program. Mortgage modification, as it is also called, changes the terms of the mortgage to help borrowers better cope with the payments. A GMAC loan modification also puts a stop to foreclosure proceedings, giving borrowers in foreclosure enough time to catch up and negotiate.

The first requirement for a GMAC mortgage modification is a valid financial hardship, such as medical emergency or job loss. This is presented through a hardship letter, accompanied by supporting documents such as bank statements, pay stubs, and W-2 forms for the last two years. Priority is usually given to borrowers who are in serious crisis, although those with good records can also apply.

GMAC also offers loan modification alternatives for those who don’t meet the requirements. One of these is the forbearance plan, a basic scheme wherein the payment structure is modified. The bank usually offers this to lenders who are behind by two months or more, but otherwise have a good payment history and capacity. A loan modification attorney can offer specific advice on other alternatives, such as a short sale or a deed-in-lieu.