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Cami Rickard, Real Estate Pro in Atascadero, CA

I have clients that are currently in a trial loan mod with GMAC and a foreclosure sale date has been set. Of course it is for December 23 which I

Asked by Cami Rickard, Atascadero, CA Tue Nov 29, 2011

found out yesterday! The rep. who helped them with the loan mod said they are working on extending the sale date. I suggested that we turn it into a short sale ASAP. The clients are hesitant on what to do because their December 1st payment is due and they don't know which way to go. (Whether to make the payment and trust the loan mod department or list it as a short sale right away.) Does anyone have any incite about GMAC and their loan mod department actually extending the sale dates? Any help would really help.

Thanks!

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I'm wondering why nobody heard about the sale date prior to now. Weren't your clients served with a summons and complaint when the foreclosure was filed? And why would the bank move forward with the foreclosure if they are making their modified payments. Does your client have the modification in writing? If so, I would advise your client to contact his or her attorney immediately - an attorney that is familiar with foreclosure, short sale and loan modifications. Not all of them are believe it or not.
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0 votes Thank Flag Link Wed Nov 30, 2011
I have not heard of the phrase "trial loan modification," from a bank. You will not be able to do a short sale and loan modification at the same time. There is a tremendous amount of risk with your clients' situation. If you know without a doubt that the clients will qualify and get approval from the bank for a short sale option, and the clients fully understand the risk and potential financial/credit consequences with no guarantee the house will sale with the option then they can make the right choice for them. Unfortunately, we as agents have little authority to make choices for the clients but are responsible for ensuring they fully understand the processes of what they want to pursue. Good luck to you!
0 votes Thank Flag Link Wed Nov 30, 2011
They may be throwing away good money after bad, if they make the payment and then are foreclosed on.
0 votes Thank Flag Link Tue Nov 29, 2011
continue with the trial payments, as the sale date approaches i believe they allow a postponement within 10 business days of the sale date, but if you are able to persuade your assigned rep to request a postponement and/or do a conference call within foreclosure attorneys you might be able to postpone the sale prior to the 10 business days. I have done several postponements with gmac and accomplished to get several permanent mod cases. you cant do both you will complicate your file with the bank its either a shortsale or a loan mod. Dont drop the ball until you accomplish your goal. good luck keep us posted.
0 votes Thank Flag Link Tue Nov 29, 2011
I agree with Michael, I would pursue both the short sale and the loan mod. Unfortunately, with most lenders, you're dealing with 2 different departments and they usually do not communicate with each other.

Best wishes,

Elva Wormley
C2 Financial Corporation
0 votes Thank Flag Link Tue Nov 29, 2011
I don't know anything about the legitimacy of GMAC's loan mod program, but some folks on the attached link aren't saying very nice things about them. It might be prudent to cover all bases - continuing to pursue the loan mod and beginning the paperwork for the short sale. That way if the loan mod department fails to extend the sale perhaps the short sale department will. Good luck.
0 votes Thank Flag Link Tue Nov 29, 2011
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