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Tue Jun 19, 2012, 08:56 AM

So GMAC, my mortgage company, declared bankruptcy

I have a call into our accountant to see if the payments we send will still be safe and applied to our account properly, and if our escrow is protected. (We have to send $$ each month, and they pay the property taxes.) My husband laughs, and says, "Well, since they don't have to pay their bills, we don't have to pay our mortgage anymore," but I know that is not true! I am tempted, though, to ask them to provide the mortgage paperwork showing that we owe them for the mortgage, since they were not the original company we worked with.

Has this happened to anyone here, and how did you deal with it? Were you protected? Thanks,

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Reply So GMAC, my mortgage company, declared bankruptcy (Original post)
adigal Jun 2012 OP
Ezlivin Jun 2012 #1
adigal Jun 2012 #4
Liberal_in_LA Jun 2012 #17
Robb Jun 2012 #2
Raven Jun 2012 #3
oldhippie Jun 2012 #12
Raven Jun 2012 #15
adigal Jun 2012 #5
SoCalDem Jun 2012 #6
adigal Jun 2012 #7
tammywammy Jun 2012 #14
melm00se Jun 2012 #8
adigal Jun 2012 #9
Javaman Jun 2012 #10
ljm2002 Jun 2012 #11
FarCenter Jun 2012 #13
adigal Jun 2012 #16
FarCenter Jun 2012 #18
TRUDYMY12 Sep 2013 #19
gopiscrap Sep 2013 #20

Response to adigal (Original post)

Tue Jun 19, 2012, 08:58 AM

1. We're in the same boat, but

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.

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Response to Ezlivin (Reply #1)

Tue Jun 19, 2012, 09:10 AM

4. Yes, that is what I am afraid of

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.

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Response to Ezlivin (Reply #1)

Tue Jun 19, 2012, 01:07 PM

17. keep close watch and careful records! congrats on paying off your mortgage

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Response to adigal (Original post)

Tue Jun 19, 2012, 08:59 AM

2. We had a WAMU mortgage when Chase bought them.

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

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Response to adigal (Original post)

Tue Jun 19, 2012, 09:06 AM

3. I had a client once whose mortgage company

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.

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Response to Raven (Reply #3)

Tue Jun 19, 2012, 10:12 AM

12. How was it settled?

Needless to say, the case went to court and was finally settled.


Who won?

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Response to oldhippie (Reply #12)

Tue Jun 19, 2012, 11:32 AM

15. Well, I'd say that it ended fairly...

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.

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Response to adigal (Original post)

Tue Jun 19, 2012, 09:12 AM

5. Thanks for the info

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

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Response to adigal (Reply #5)

Tue Jun 19, 2012, 09:24 AM

6. Perhaps you could call the property tax people

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?

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Response to SoCalDem (Reply #6)

Tue Jun 19, 2012, 09:29 AM

7. That' s a good idea, especially because we are paying about 8%

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

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Response to adigal (Reply #7)

Tue Jun 19, 2012, 10:28 AM

14. If your mortgage is at 8% you should definitely look at refinancing. n/t

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Response to adigal (Original post)

Tue Jun 19, 2012, 09:43 AM

8. Does GMAC

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.

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Response to melm00se (Reply #8)

Tue Jun 19, 2012, 09:54 AM

9. They hold the mortgage, they are not just a servicer n/t

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Response to adigal (Original post)

Tue Jun 19, 2012, 10:06 AM

10. I would ask for the paperwork.

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.

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Response to adigal (Original post)

Tue Jun 19, 2012, 10:10 AM

11. I happened to me...

...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.

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Response to adigal (Original post)

Tue Jun 19, 2012, 10:15 AM

13. It is in Chapter 11 reorganization.

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

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Response to FarCenter (Reply #13)

Tue Jun 19, 2012, 01:06 PM

16. Thank you - we did get a few letters from them

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

I think I am going to demand my original paperwork.

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Response to adigal (Reply #16)

Tue Jun 19, 2012, 06:30 PM

18. As tammywammy said, you should probably refinance anyway

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Response to adigal (Original post)

Wed Sep 11, 2013, 09:57 AM

19. Did you get mortgage paperwork?

I am in the same position as you with this mortgage. I don't understand why they send us these notices if it doesn't mean anything to us??? Did you get the mortgage paperwork and if so how did you go about doing that? Are you now making payments to OCWEN as I am?
Thanks

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Response to TRUDYMY12 (Reply #19)

Wed Sep 11, 2013, 04:22 PM

20. Welcome to DU!

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