GMAC loan workout

[DaCounselor]

“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________

Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…

I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.

You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.

And for God’s sake, don’t you cash out your 401K.

Keep us posted, if you would please. Thanks for sharing.

[DaCounselor]

“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________

Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…

I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.

You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.

And for God’s sake, don’t you cash out your 401K.

Keep us posted, if you would please. Thanks for sharing.

[DaCounselor]

“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________

Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…

I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.

You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.

And for God’s sake, don’t you cash out your 401K.

Keep us posted, if you would please. Thanks for sharing.

[DaCounselor]

“Thanks for posting that, it’s very interesting. All the questions on the bank’s form are basic questions you should have asked yourself before getting into this loan… ”
__________________________________

Absolutely. And of course on the flip side, many of these detailed questions regarding finances should have been asked by the lender prior to approving the loan…

I applaud you for trying to work it out with your lender. I don’t know enough about the specifics of your situation, but if you cut an 80/20 deal to get into this property and still have the original loans, the lenders are probably facing a loss, maybe a significant loss, with no recourse against you.

You’re doing the right thing for now. If they won’t work it out with you, I would think about a sale or short sale, depending on your equity position.

And for God’s sake, don’t you cash out your 401K.

Keep us posted, if you would please. Thanks for sharing.

[davelj]

djrob, thanks for sharing your story. A couple of comments.

OK, you were dumb. You’re probably going to cost whatever institution(s) lent you this money a lot of money and inconvenience (ultimately). They and their investors are unhappy with you and for good reason. You’re breaking the contract that you signed. So, this “loss mitigation” process that you apparently find so tedious (so many questions!) is supposed to be inconvenient. It’s supposed to be painful. Why? As I said, you’re about to cost the owners of your loan money. You’re the problem. It’s understandable.

Now, you realize you were dumb and you’re trying to “work this out.” That’s a start. However, it’s probably not going to work. Things are probably still too institutionalized and bureaucratized [may not be a word] for your efforts to get anywhere. Thus, for you personally it’s probably better to just walk away from this thing, take the dings to your credit and come back in seven years and try ownership again when you’re better prepared for it. It ain’t the end of the world. You rolled the dice and lost. Move on. Don’t dwell on it. But remember, you aren’t the victim (and I don’t think you see yourself as the victim, which is good); the institutions who are going to absorb your loss are.

[davelj]

djrob, thanks for sharing your story. A couple of comments.

OK, you were dumb. You’re probably going to cost whatever institution(s) lent you this money a lot of money and inconvenience (ultimately). They and their investors are unhappy with you and for good reason. You’re breaking the contract that you signed. So, this “loss mitigation” process that you apparently find so tedious (so many questions!) is supposed to be inconvenient. It’s supposed to be painful. Why? As I said, you’re about to cost the owners of your loan money. You’re the problem. It’s understandable.

Now, you realize you were dumb and you’re trying to “work this out.” That’s a start. However, it’s probably not going to work. Things are probably still too institutionalized and bureaucratized [may not be a word] for your efforts to get anywhere. Thus, for you personally it’s probably better to just walk away from this thing, take the dings to your credit and come back in seven years and try ownership again when you’re better prepared for it. It ain’t the end of the world. You rolled the dice and lost. Move on. Don’t dwell on it. But remember, you aren’t the victim (and I don’t think you see yourself as the victim, which is good); the institutions who are going to absorb your loss are.

[davelj]

djrob, thanks for sharing your story. A couple of comments.

OK, you were dumb. You’re probably going to cost whatever institution(s) lent you this money a lot of money and inconvenience (ultimately). They and their investors are unhappy with you and for good reason. You’re breaking the contract that you signed. So, this “loss mitigation” process that you apparently find so tedious (so many questions!) is supposed to be inconvenient. It’s supposed to be painful. Why? As I said, you’re about to cost the owners of your loan money. You’re the problem. It’s understandable.

Now, you realize you were dumb and you’re trying to “work this out.” That’s a start. However, it’s probably not going to work. Things are probably still too institutionalized and bureaucratized [may not be a word] for your efforts to get anywhere. Thus, for you personally it’s probably better to just walk away from this thing, take the dings to your credit and come back in seven years and try ownership again when you’re better prepared for it. It ain’t the end of the world. You rolled the dice and lost. Move on. Don’t dwell on it. But remember, you aren’t the victim (and I don’t think you see yourself as the victim, which is good); the institutions who are going to absorb your loss are.

[davelj]

djrob, thanks for sharing your story. A couple of comments.

OK, you were dumb. You’re probably going to cost whatever institution(s) lent you this money a lot of money and inconvenience (ultimately). They and their investors are unhappy with you and for good reason. You’re breaking the contract that you signed. So, this “loss mitigation” process that you apparently find so tedious (so many questions!) is supposed to be inconvenient. It’s supposed to be painful. Why? As I said, you’re about to cost the owners of your loan money. You’re the problem. It’s understandable.

Now, you realize you were dumb and you’re trying to “work this out.” That’s a start. However, it’s probably not going to work. Things are probably still too institutionalized and bureaucratized [may not be a word] for your efforts to get anywhere. Thus, for you personally it’s probably better to just walk away from this thing, take the dings to your credit and come back in seven years and try ownership again when you’re better prepared for it. It ain’t the end of the world. You rolled the dice and lost. Move on. Don’t dwell on it. But remember, you aren’t the victim (and I don’t think you see yourself as the victim, which is good); the institutions who are going to absorb your loss are.

[Coronita]

djrobsd,

 

Thanks for sharing your personal experience. You have a lot of courage to share publicly what is going on at a personal level. I hope things work out for you. The only thing I hope you don't do is don't cash your 401k. It's suppose to be your retirement nestegg. I could be wrong about this (and someone correct me if so) but I believe 401k accounts are exempt from creditors. Someone please confirm. If the bank can't work things out for you, I'd also recommend walking. Yes it's a ding on your credit. But you aren't going to be the only one, and after 7 years, when you're ready again, you can approach home ownership again. You might though want to secure if a rental place before this though.

 

Good luck. 

 

[Coronita]

djrobsd,

 

Thanks for sharing your personal experience. You have a lot of courage to share publicly what is going on at a personal level. I hope things work out for you. The only thing I hope you don't do is don't cash your 401k. It's suppose to be your retirement nestegg. I could be wrong about this (and someone correct me if so) but I believe 401k accounts are exempt from creditors. Someone please confirm. If the bank can't work things out for you, I'd also recommend walking. Yes it's a ding on your credit. But you aren't going to be the only one, and after 7 years, when you're ready again, you can approach home ownership again. You might though want to secure if a rental place before this though.

 

Good luck. 

 

[Coronita]

djrobsd,

 

Thanks for sharing your personal experience. You have a lot of courage to share publicly what is going on at a personal level. I hope things work out for you. The only thing I hope you don't do is don't cash your 401k. It's suppose to be your retirement nestegg. I could be wrong about this (and someone correct me if so) but I believe 401k accounts are exempt from creditors. Someone please confirm. If the bank can't work things out for you, I'd also recommend walking. Yes it's a ding on your credit. But you aren't going to be the only one, and after 7 years, when you're ready again, you can approach home ownership again. You might though want to secure if a rental place before this though.

 

Good luck. 

 

[Coronita]

djrobsd,

 

Thanks for sharing your personal experience. You have a lot of courage to share publicly what is going on at a personal level. I hope things work out for you. The only thing I hope you don't do is don't cash your 401k. It's suppose to be your retirement nestegg. I could be wrong about this (and someone correct me if so) but I believe 401k accounts are exempt from creditors. Someone please confirm. If the bank can't work things out for you, I'd also recommend walking. Yes it's a ding on your credit. But you aren't going to be the only one, and after 7 years, when you're ready again, you can approach home ownership again. You might though want to secure if a rental place before this though.

 

Good luck. 

 

[nostradamus]

djrobsd again thanks for posting this info, it’s very enlightening. I don’t buy foreclosures and don’t think there are many shills for the foreclosure industry on this site. I would not benefit at all if you walk, except for a little schadenfreude and hopefully in a couple years prices can justify buying a home.

On blogs there are people who are frank and people who are dick (I stole that line from Planet Terror). If I were you I would be frank and tell your bank you’ve got your 401(k) and there’s no way in hell you’re going to raid it. There’s nothing they can do unless you’re in some kind of recourse loan. Don’t be scared of the bank, at this point you may wish to be completely forthright with them to see what kind of solution they come up with. If you provide them with false information it might bite you in the arse later. The bank might say “it’s OK to raid your 401(k) because if you invest it in the house it will be your nest egg in the future” but you just tell them “if I walk now I can keep the 401(k) I’ll worry less about a steep decline in value like in the housing market”.

Although one might say you were dumb, I think we can all agree that the lender and the fed were just as dumb and it took 3 to tango. Borrowers blame the lenders, lenders blame the fed, I don’t know who the fed is gonna blame (probably back on the borrower for false “stated income” or perhaps they’ll offer up Greenspan for the sacrificial fire).

[nostradamus]

djrobsd again thanks for posting this info, it’s very enlightening. I don’t buy foreclosures and don’t think there are many shills for the foreclosure industry on this site. I would not benefit at all if you walk, except for a little schadenfreude and hopefully in a couple years prices can justify buying a home.

On blogs there are people who are frank and people who are dick (I stole that line from Planet Terror). If I were you I would be frank and tell your bank you’ve got your 401(k) and there’s no way in hell you’re going to raid it. There’s nothing they can do unless you’re in some kind of recourse loan. Don’t be scared of the bank, at this point you may wish to be completely forthright with them to see what kind of solution they come up with. If you provide them with false information it might bite you in the arse later. The bank might say “it’s OK to raid your 401(k) because if you invest it in the house it will be your nest egg in the future” but you just tell them “if I walk now I can keep the 401(k) I’ll worry less about a steep decline in value like in the housing market”.

Although one might say you were dumb, I think we can all agree that the lender and the fed were just as dumb and it took 3 to tango. Borrowers blame the lenders, lenders blame the fed, I don’t know who the fed is gonna blame (probably back on the borrower for false “stated income” or perhaps they’ll offer up Greenspan for the sacrificial fire).

[nostradamus]

djrobsd again thanks for posting this info, it’s very enlightening. I don’t buy foreclosures and don’t think there are many shills for the foreclosure industry on this site. I would not benefit at all if you walk, except for a little schadenfreude and hopefully in a couple years prices can justify buying a home.

On blogs there are people who are frank and people who are dick (I stole that line from Planet Terror). If I were you I would be frank and tell your bank you’ve got your 401(k) and there’s no way in hell you’re going to raid it. There’s nothing they can do unless you’re in some kind of recourse loan. Don’t be scared of the bank, at this point you may wish to be completely forthright with them to see what kind of solution they come up with. If you provide them with false information it might bite you in the arse later. The bank might say “it’s OK to raid your 401(k) because if you invest it in the house it will be your nest egg in the future” but you just tell them “if I walk now I can keep the 401(k) I’ll worry less about a steep decline in value like in the housing market”.

Although one might say you were dumb, I think we can all agree that the lender and the fed were just as dumb and it took 3 to tango. Borrowers blame the lenders, lenders blame the fed, I don’t know who the fed is gonna blame (probably back on the borrower for false “stated income” or perhaps they’ll offer up Greenspan for the sacrificial fire).

[Author]

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