I read a complaint about Wells Fargo that reminded me of the treatment I have been getting from GMAC Mortgage L.L.C.
First, they say that documentation is missing, (apparently a good way to get the file off their desk).
Second, they actually told me I was denied because I wasn't 60 days or more late. This is contrary to their statements that you should call them and they will work with you regardless.
Third, they will send you a letter upon denying you for a mod. letting you know that you are qualified for the HAFA program. The letter says that upon entering the program, they will determine an acceptable Market Value and then notify you so you can list the property. When you talk to them, however, they tell you the opposite--that you need to list your property first and then fax it to them.
I told them I wanted to participate in HAFA on the phone. A few weeks later, they acted as if I never responded to the offer to participate in the program.
I would recommend if you can record all your conversations because you will be amazed at how many times they contradict themselves. It is uncertain what part is incompetence and what is a smokescreen. There appears to be an incentive for them to be unhelpful and unproductive and inefficient.
I have heard that servicers are typically mainly concerned about maximizing their servicing income and actually they have a conflicting interest in helping you because they make more money the further a loan slides towards foreclosure.
The big mystery is why an investor would want to take a major write off and have to foreclose vs. modifying the terms. A possible explanation is the servicer may not be forwarding modification requests to the investor or possibly securitization agreements don't allow for any modifications.
The most frustrating part is that you may never know what contact is occuring with the investor or what may or may not be possible to be done with your loan because they don't tell. My speculation is most employees are in the dark as well.
I was just told that my second mortgage investor is Wells Fargo Bank yet GMAC is servicing it? It was modified in March of 2010 by GMAC Mortgage LLC. If this is true,I have lost the leverage I thought I had. That being that one investor owned both my loans and had collectively more to lose by doing nothing to help.
Of course, I don't believe anything that GMAC Mortgage, LLC tells me anymore because they have continually given me mis-information.
I have to stop short of saying they lie, because of their apparent incompetence causes them to be completely inconsistent in their representations as to just about anything.
It is hard to believe that they could be so dis-organized and incompetent so you start developing conspiracy theories to try to justify it. It may just be their business model. "Snow them with stupidity?" I can't imagine who this benefits but their servicing ledger.