Home : Blogs : Rosemary Brooks -Mother & Daughter (866)-750-8282 : Mother & Daughter Blog

Is GMAC trying to take the "short" out of Short Sales?

Here are some of GMAC guidelines for approving a Short Sale.

There are so many owners that have GMAC loans that live in the San Joaquin County CA area (especially Stockton, Modesto and other surrounding areas). GMAC is a household name from homes to automobiles, but yet they are getting known as one of the harder to deal with when it comes to short sale approvals.

Whereas they probably was one of easier lenders to get a home loan with at the beginning of the loan. How does that work? This information should be useful if you have or will run into a owner/seller that have either a first or second lien position and they are looking to do a short sale. Not all lender are equal in their WHAT IT TAKES TO GET A SHORT SALE APPROVAL process.

Are you working short sales?
Does one of your owners have a second lien with GMAC?
Is your offer less than what is owed on the first or just covering the first and are you worried about how GMAC's guidelines for approving a short sale work?

If yes, please read this tip on How GMAC works their approval of a short sale. For those that are not familiar with GMAC's approval for release of lien. I spoke to a rep there today and here are a few of their guidelines:

Full financial package from borrower
Maximum commission to agents 4%
In some cases asking 10% of loan, refusing to take $1-3000 payoff, denying short sale or
GMAC will only accept short sales that come in @ 90~100% of fair market value (FMV).
No closing cost credit to buyer
She stated that it makes better sense to them to decline low settlement offers, because they cannot pursue the borrower for the difference and they can recover more money in the future from the borrower.
Authorization to Release Information I have a standard Authorization form that I use and in most cases this works fine. There are a few banks that require their own form for this. GMAC will require that you use their form and it must be signed and notarized and the original must be sent back in.

And if you have something to add to this tip that you know or have heard about GMAC's short sale approval process, please let us know. A good place to add this information and to find out about other lenders (contact information for the loss mitigation department, etc) please check out Mike Mueller's site: http://www.patagoniafinance.com/2007/06/loss-mitigation-departments.html This is a real good resource for Residential and Commercial information. There is a whole world of information on the Foreclosure process. Check it out!

*** ON A POSITIVE NOTE:With California impacted more than any other state by the national home foreclosure crisis, Governor Arnold Schwarzenegger worked with loan servicers from Countrywide, GMAC,Litton and HomEq to agree to streamline "fast-track" procedures to help keep more sub-prime borrowers in their homes. So maybe there are working harder helping people KEEP THEIR HOMES, than helping them sell them short. Which I hope is the case, if there is help to keep an owner in their home, that is the way to go. However, there are more that are in the situations where they cannot be helped to keep the home because the workout plans are calculating out to be a higher mortgage payment than what they are struggling to pay now. So short sale is their only option. And for those that don't fit into the other help plans, why make the short sale process and requirements so hard that the owners end up losing their home instead of getting help gracefully.

Side note: Homecomings is one of GMAC's companies.

For free market evaluation of your home visit http://www.motheranddaughterrealty.com/

Check out my Mother and Daughter Blog for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team and we also focus in Short Sales and the Pre-Foreclosure process. Our consultations are free. Our aggressive marketing plan includes progressive on-listing advertising. If you are thinking of selling or buying a home in Northern California: Central Valley (San Joaquin/Stanislaus Counties), East Bay (Alameda Counties) and would like a free Home Seller or Home Buyer Handbook, please call us at Perfect Financial Solutions 866-750-8282 or direct 510-284-7721 or email at brooksrm2042@aol.com

the Mother and Daughter Real Estate Team ~ Short Sale Specialists

Perfect Financial Solutions - We care about our clients Real Estate needs
Tel.: 866-750-8282
Fax: 209-879-4601
http://www.motheranddaughterrealty.com

Posted by Rosemary Brooks -Mother & Daughter (866)-750-8282 on 01/05/2008 02:51 PM

Comments (23)

short sale, foreclosure, default, gmac, seller, rosemary brooks, perfect financial solutions, short sale specialists

Originally posted at: Mother & Daughter Blog: Is GMAC trying to take the "short" out of Short Sales?

This post has been included in California Information
Post is included in group: Realtors®
Post is included in group: California Short Sales, REO's, and Foreclosures
Post is included in group: Posts to Localism
Post is included in group: Short Sale Specialists & Pre-Foreclosure Education
Post is included in group: Short Sales Specialists

23 Comments on Is GMAC trying to take the "short" out of Short Sales?

JAN

2008

Rosemary,

Great information, thank you. I am doing my first purchase of a short sale in many years....and it is with Homecomings.....I will share if and when I get details.

Dan ~ You're welcome and I should have mentioned that Homecomings is one of GMAC subsiduaries. I think I will go edit my post. That's important information to know. I had checked on both sites and could not find any information on the short sale requirements. However, I did find a link to their workout plan which might be the same or close to what they want: seee http://www.homecomings.com/pdfs/Workout_Package.pdf

I wonder why the lenders don't JUST DO IT and post the short sale requirements right on their site. I can understand not putting the loss mitigation direct phone numbers but if they put the information on what they are looking for on their site, it would cut down on the confusion.

Please do update me and others on what you find out about the requirements that Homecomings/GMAC is requiring for an approval and how smooth or HARD the transaction is going.

I am going to also send the information to Mike Mueller's site which has lender information. This should help us all in our negotiation efforts to get short sale approval.

Dan, check out Mike's site.

JAN

2008

I reside in New Jersey and would like to purchase a short sale property whose mortgage is held by GMAC. The housing Market here is on a very slippery slope and I believe still hasn't hit rock bottom. I am sure there is another bid that was submitted and from all correspondence I can assume that the bid is higher but not by much. My bid was the first submitted however. Can anyone offer me some information on how to proceed or if I can help GMAC chose my offer since I have the larger cash down payment? I feel so helpless with this process and I know the waiting game might work in my favor but I really don't want to loose getting into this house. I am not looking to flip it just live in it! Thanks in advance for any help/info. anyone can offer.

Diane ~ not sure how you can do that unless they are allowing correspondence from you or your agent and they allow additional info to come to them during the negotiations. I would maybe talk to the listing agent and see what they suggest at this point. Sometimes they can just fax in the information. But really they should have all the information on you that they need. The down payment may help. And don't forget to pray!

Wish I could tell you more and I wish you the best.

Thank you and trust me I am praying! My bid went in through the listing agent (that is whom I am dealing with) the other bid is with an outside agent. However I find it odd that I didn't have to sign anything and she said she submitted the paperwork? Is that correct? I just want this to come to fruition for our family, it would be a great location.

The listing agent said that they submitted the paperwork and hasn't heard anything back yet and that it is out of their hands now but this agent doesn't have much experience in short sales and everything I read said that they can help make or break a bid/offer. I was hoping that I could do some leg work for them.........I have done alot of research. At the same time if I contact the lender and they do talk to me, would they just naturally take the higher offer?

Diane ~ the job of the listing agent is to submit a solid offer, and backup report on the property plus the seller's financial, hardship and other documents required to obtain a short sale approval. Sounds like they did that and on top of that they submitted 2 offers. So it is really up to the lender to accept the ss request.

I have had lender just call me and say when do you want to close and will not decide which offer to take -- they left it up to the seller.

The seller is suppose to approve the offer that the lender approves.... They may or may not have to sign it but they surely should know what is saying and agree to the terms. Any questions should be kicked back to the lender for clarity.

I'd ask the listing agent if you can slip in another piece of paperwork... if they let you, put it on paper if not... Well you're already praying.

Wow, thank you Rosemary. There may be a light at the end of this tunnel!

Hi Rosemary, I have not done a GMAC yet, but I will save your info for reference! Thank you so much! By they way, I've been wondering why it would matter to the second what the commission is, because it is not going to affect what they get anyway. I have an EMC second where they stipulate 5% commission, yet they are only taking $1500. I am going to try to get my 6% on that one, since the first is not cutting.

Diane ~ try communicating with the listing agent. I am sure they want it sold too. I wish you the best.

Wendy ~ its hard to determine what these lenders are thinking. I had not heard about the commission demand from seconds either but maybe they feel that is more they can get. Never take what someone else tell you about what they found out..... if you get GMAC for a 1st or second, go with what they say is their demand because it just may have changed. I hope so. I worked with EMC on a first and they ended up giving me 6%!! so nothing is standard or stone.

Rosemary, I have had really good luck with GMAC. I have gotten 5% commission and quick approval on one recently completed and on another, they were the 2nd and took $3000 as final payment. I guess I should consider myself lucky with them.

JAN

2008

Stella ~ great news~ I like hearing news like that. This just goes to show that you cannot base one experience on another. I will update my post to reflect their flexibility and remind others that every transaction can be different. Thank you for letting me know.

Hi Rosemary, Well I talked to the listing agent again today and they said that no word back from the bank but GMAC (the lender) may turnaround and not approve the short sale because the seller is not in default of their mortgage yet. They said that once the bank approval for a ss comes through then we enter into a contract with the seller but then again so does the other person who I believe bid higher than us. I do know the seller is on the verge of bankruptcy due to divorce. I am hoping I can alleviate them of this burden and help GMAC realize I am putting down more than half of what the seller owes to them in cash. The listing agent did relay this information to them so my hopes are still high. I just feel so helpless and want to do more than wait.

Some of the banks/lenders are doing better at Auctions then with the short sale process. I had one that was a short sale for $380,000 sold for $410,000 at Auction.

At Auction they don't have to give closing help and all other expenses are paid by the buyer.

Some of the banks/lenders are doing better at Auctions then with the short sale process. I had one that was a short sale for $380,000 sold for $410,000 at Auction.

At Auction they don't have to give closing help and all other expenses are paid by the buyer.

Endea ~ I figured they were finding other ways to avoid the short sale. I guess if you look at it, the buyer is out of a home either way - and the lender is getting more for the property. And it pretty much cut out the commissions too.

JAN

2008

I often deal with GMAC on short sales and I have found that they specifically cut commissions to 5% if they hold only one of th liens. They will cut it to 4% if they hold both a first and second lien on the property. In addition, if you want to get your authorization quickly you need to have their specific form. Do not get it notarized or send the original back to them. Get loss mitigations direct fax number. Loss mitigations knows that time is of the essence with short-sales. Every lender is different with short-sales. It is just like originating loans, you have to learn the how the negotiators think just like you have to understand what the underwriters are looking for when you submit the file. The better handle you have on that, the more successful you will be. Good luck!

Ken ~ thank you for this solid advice. Each and every negotiation is different. I have found that one day to another can bring about a different attitude with the negotiators in Loss Mitigation. I appreciate your advice.

MAY

2008

GMAC is one of the worst banks to deal with if you have payment problems. One of my clients/friends is two months behind and if they go 3 months in Virginia you're out of your house!!!

And they will not fool around with you.

According to Virginia law, you have 45 days before your home is padlocked.

Nice...

JUN

2008

I have gone thru many lenders and GMAC is the CHAMPION OF RETARDS. GM should just relinquish their management to Tata Motors of India and the shareowners will prosper. I called the "Insurance" hotline to ask how to eliminate the PMI. After tedious "chats" with the computer, it told me to call the Customer Care hotline. After more number punching on the phone with Customer Care, a voice answered and he later transfered me to.....the Insurance Hotline where the cycle sort of repeated itself. In the end, i still could not resolve the matter. so i will never deal with GMAC again....ever! THE CHAMPION OF RETARDS !!!

JUN

2008

Denny ~ Sorry you experienced that with GMAC but I am not surprised - when it comes to them. I like that title "The champion of retards!"

APR

Working on a homecomings short sale. have been reading your posts. Good info.

MAY

Hello Rosemary, I was very interested in the info you had posted about Homecomings Financial Short Sales. I am currently looking at my options, as I would like to sell my home. I am currently on an arm which is up in December of this yr (09). I am unfortunately unemployed which doesnt help matters, but I am current on all of my bills (including mtg payment).

Just to give you a little background on me... I am somewhat knowledgeable of the financial industry and how it works, as I used to work in the mortgage and title/escrow industry. I used to process loans, and know how difficult it can be to work with lenders.

My mortgage is currently with Homecomings Financial, and I am current on my mtg, but looking to sell, & unemployed. Do you have any advice for me as to what to do first? Do I have to be behind in my mortgage for the lender to even think about doing a short sale? Does my house have to be on the market before a lender will even consider it? If you have any websites or info that I could look at , it would be extremely appreciated. Thank you, Heather

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?