Residential Capital Going Bankrupt (Vanity)

Me

[MacMattico]

I just received a letter from Residential Capital, parent company of my mortgage company (GMACMortgage) that says for several months they have been persueing Chapter 11 bankruptcy. This letter said they were informing motgagees in case they "had a claim" and then just went on with a bunch of spin how everything is fine.

Smart FRiends, is everything fine? I don't have any mortgage issues so I don't see how it can really effect me, maybe I'm just naive. Is this just old news I was unaware of? Yes, I know there's been a mortgage crisis but is Residential Capital a big player and is this big news? Will this mean more mortgage bailouts?

[MacMattico]

I pay my mortgage, so probably, some how, I'll get screwed.

[E. Pluribus Unum]

I had my mortgage with Countrywide when they went under. I made my last few payments to Bank of America. I paid it off ASAP. Who knows what the corrupt psychopaths in the banking industry are capable of.

[who_would_fardels_bear]

My understanding is that their portfolio of mortgages is considered part of their assets. Those assets will be sold to someone else to help pay their creditors.

So you will end up with a different mortgage company that presumably will be held to the conditions of your loan, i.e. they will have to charge you the same interest rate, allow you to pay off early (or not) if those are your current terms.

You just need to keep track of this and make sure they don't screw you over on purpose or by accident.

[Gay State Conservative]

I'm no expert in such matters but...as long as you're repaying the loan in completely accordance with the contract you signed on the date of origination (assuming you've agreed to no modifications) and they're also in complete compliance with that same contract I don't see how you can get hurt or have any kind of "claim".My mortgages are paid off so I don't follow this stuff closely but I guess there are "loan modification" plans out there,at least some government sponsored,so I suppose that the bankruptcy could effect your rights under these plans.

This self admitted amateur thinks you have nothing to worry about...but I surely could be wrong.

[HereInTheHeartland]

If your rate is above market; refinance and get away from them.
Customer service will likely suffer.

[sten]

just yesterday i had a letter from GMAC offering to radically drop my interest rate

seemed odd to get such an offer

any thoughts on what is happening to GMAC ??

[struggle]

I knew GMAC was in trouble in 2008 when they suddenly shuffled off my loan to a subsidiary company. You’ll probably end up paying your loan to someone else.

[MacMattico]

I’ve never been happy with GMAC. They bought my original loan in some bundle deal, and then just about every month for the last 3 years claimed I paid late and had a late charge. Then I’d fight with them and they’d remove it. My mortgage is on time, not in any Government program, and will be paid off in 6 years a few years before I reach 50. They better not mess this up!

I had no idea GMAC Mortgage had financial issues, but then again the first two letters are GM.

[Johnny B.]

Several of the mortgages I’ve had we’re sold to different mortgage holders at some point. Other than getting a new book of payment tickets, I never noticed a difference. Don’t worry about it.

[Gay State Conservative]

...for the last 3 years claimed I paid late and had a late charge. Then I’d fight with them and they’d remove it.

Given that I think you'd be very wise to check your credit score with all three credit agencies.It seems distinctly possible that there are problems with your ratings thanks to their stupidity.

[derekr44]

That interest rate offer is part of the current DoJ Mortgage Settlement. My mortgage is through GMAC (Ally) and they offered me the same to get out of my ARM and into a Fixed-30. The Bankruptcy is a different issue. They'll sell off mortgage assets to companies like mine for servicing in order to better balance their books.
Also, here at work (I work for a mortgage servicer), the DoJ suit stuff is really at the front of the line right now.

[El Laton Caliente]

Make VERY sure you keep a hard copy record of every payment, especially on mortgages that are moved from one mortgage company to another. You will pay off your mortgage and get told you have not made all the payments. If you do not have complete records you could end up paying twice for many of the payments.

This happened to my parents and several others I have know. My parents got lucky in that even though their records were not complete, they did have the cancelled checks for the disputed payments.