So GMAC, my mortgage company, declared bankruptcy

we only have a few months left on our mortgage.

So very close!

I am keeping a close eye on what happens so I don't end up paying off our mortgage only to discover some "hidden" trick that means I don't get the title to my house.

That we will send payments, and they will go to paying off GMAC's debt rather than our debt. And I believe this can happen in today's Corporate Ownership of all Americans.

Not quite the same, of course. Trying time for sure; listen to your accountant.

just disappeared. My client could not get any information about what to do about his mortgage payments and so he just stopped trying. He didn't set up an escrow account for the payments, didn't contact a lawyer, did nothing. Five years later the guy who owned the mortgage company reappeared and demanded all the payments plus interest and penalties. Needless to say, the case went to court and was finally settled. In your case there may be a Bankruptcy Trustee to whom payments can be made but you should see a lawyer so you know exactly what to do.

Who won?

my client had to make all the back mortgage payments but the mortgage guy did not get any late fees or penalties. My client should have seen a lawyer and set up some sort of escrow account as soon as he realized what was happening. Of course, both sides were out legal fees but, under the circumstances, I'm not sure that could have been avoided.

I want to make sure we do the right thing, even if GMAC isn't.

and make the payments directly to them...and to the homeowners insurance if that's part of your escrow account.

I would do that..and then make payments that only included p & i..
Have you though about doing a refi elsewhere?

It would be smart to refi now, I think. Thanks!!!

hold your mortgage or are they just the servicer?

If they hold the mortgage, then your mortgage is considered an asset of the (now bankrupt) corporation and may be sold off (like any other asset) as part of the bankruptcy.

If they service your loan (collect the payments and forward them on to the holder of the mortgage, like Freddie or Fannie) then I might contact them to see what their advice is.

There are hundreds of stories of mortgage companies going under and having no documents proving they are the holders of the mortgages.

I wouldn't ask, I would demand.

...right after I had refinanced and had a new place to send the mortgage payment to.

I sent it via automatic deposit, and it did not post. I called, and the number was disconnected. I sent a check via overnight mail, and it was returned to me. Finally I called the local company who had handled the refi, and they said "Oh, yeah, they went bankrupt. Just wait until you get a notice from the new lender and send it to them."

Well that's exactly what happened, and all my escrow payments were made as planned.

I got to thinking, though. Given that the place went bankrupt, that means the place that bought the mortgage paper paid pennies on the dollar. But none of that got passed on to me, the hapless homebuyer.

Oh well, c'est la vie. I'm doing a short sale and buying a new, cheaper house for cash with my retirement money. No mortgage or rent payments, Social Security to live on, anything extra I make is gravy.

YMMV -- in particular, you should talk to someone and make sure that your escrow payments are being made. I think I may have just been lucky in that department.

http://www.gmacmortgage.com/ has a link to
http://www.kccllc.net/rescap which has information about the bankruptcy and a link to
http://www.kccllc.net/content.asp?C=5318 "Hotlines and Frequently Asked Questions:"
http://www.kccllc.net/documents/1212020/1212020120607000000000008.pdf says

May 14, 2012

Dear Homeowner,

As you may have read or heard, Residential Capital, LLC (ResCap), recently announced
that it and its subsidiaries, including GMAC Mortgage, are restructuring under Chapter 11.
Although you may not be familiar with our name, ResCap is the parent company of GMAC
Mortgage, which services your mortgage. As servicer, GMAC Mortgage collects and
keeps track of your mortgage payments and ensures that they are applied to your account
and properly distributed to the lenders and investors who own your loan.

The restructuring of ResCap and GMAC Mortgage does not change your obligations as a
mortgage borrower. As such, you must continue to make your scheduled mortgage
payments on time and in full to the address listed on your monthly account
statement.

While nothing has changed in relation to the amount of your mortgage payments or where
you send those payments, we understand you may have some questions. Please feel free
to contact our toll-free Homeowner Hotline at (888) 926-3479 between 8 a.m. and 5 p.m.
EST, or refer to http://www.kccllc.net/rescap for additional information regarding ResCap’s
Chapter 11 reorganization. If you have specific questions about your loan, please reach
out to the customer service number listed on your monthly statement.

In the coming weeks, you will receive a Notice of Chapter 11 Bankruptcy Cases, Meeting
of Creditors, and Deadlines in the mail. No action is required on your part, related to this
restructuring.

For our part, everyone on the GMAC Mortgage team is committed to providing the same
high level of service and responsiveness we’ve always shown to the homeowners whose
mortgage loans are entrusted to us. We look forward to helping you continue to build
equity and value in your home.

Sincerely,
Thomas Marano
Chief Executive Officer
Residential Capital, LLC

but I am not really trusting them in regard to a lot of things.

I think I am going to demand my original paperwork.