Complaint Review: GMAC - Waterloo Iowa

We got a GMAC mortgage through Ditech.com. We have had it since 2001. The trouble with them started in January 2004. We had a couple of little tiffs with them before then, giving us insurance when we had our own, but they were worked out. In January of this year (2004), we got a notice that 3 years of taxes were delinquent, and they were being paid on our behalf, and that are payments were going to be raised from $338.04 to $757.23.

Our mortgage payment was automatically being taken from our bank account, and since both my husband and I are on

disability, we have a flat rate that is deposited, and there is no way we could afford even one month of that payment, while we disputed the increase. We did not have an escrow account. We paid our insurance and our taxes ourselves. We called them, and explained that we were not delinquent in any taxes, and they told us to prove it to them. We faxed them all our information and copies of checks, along with a statement from our tax collector. In addition, we stopped the automatic payment, and mailed the correct amount of our mortgage payment.

In the meantime, my bank stopped the payment themselves (we did not know that it would automatically get stopped if GMAC tried to take our more than we had allowed for), so GMAC charged us for a "bad check", plus interest charges and late fees. I called them, they said that they would be reversed when the matter was settled. Needless to say, that never happened.

Then comes the most ridiculous part. I asked them for copies of where they had paid taxes, because, since they were already paid, someone should be returning tax money to someone. After a couple of weeks, and more interest charges, they sent a copy of what they paid. They sent over $3,000 to a county I don't live in. (We live in Wyoming county and the mortgaged property is also in Wyoming county, but they sent money to Lackawanna county)In the meantime, they took February and March's payment to

reduce the escrow account, and said, now you are 2 months late, and they needed $2,271.69 (plus interest and late fees) for April's payment. Of course, come April, I got a foreclosure notice, because I sent my regular payment to them, and they credited it to "who knows where".

When called again for the 16th or 17th time, they said they got back $1,600 from the county courthouse, and they had credited it to my account, so $1,400+ is still missing, plus they have me charged for all these late payments, etc. A couple of days later, they said they had it all figured out, and to wait until they called me for my next payment, so that it would be corrected on the computer. 2 weeks later, they called, and I sent the amount of my regular payment, and it was all supposedly corrected. (that's May).

I dutifully sent in June's, July's and August's payments, and THEN, received a foreclosure notice!!! GMAC had held June, July and August payments, added all the crap back into an escrow account, and said we owed them thousands, and that we no longer had very much equity in the house. When I called them, again, I got the EXACT same garbage I got when it started in January. Oh,we had to pay your back taxes, etc., etc. Then, they sent back June and July's check, saying that they couldn't accept it because it was less than I owed them, and that if they accepted it, they would be giving up their rights in a foreclosure.

As of today, I still have not found August's payment (though they have not cashed it), and I sent them a cashier's check for the month's owed (June, July, August and now September). (along with proof of mailing). The day before yesterday, I got a NEW foreclosure notice, and when I called them, they said they never received money from us since May, and what did the problem seem to be.

I called our bank, and GMAC had cashed the cashier's check last week. So they (GMAC) demanded, again "prove it". Our bank faxed them a copy of the cashed cashier's check, and now we are "on hold" until October 9th (that's their date, don't know how they picked that), while they "find the check and fix the problem". Well,our credit is trashed in the meantime, and no one wants to refinance this for us (at a reasonable interest rate) because of all this AND our name is trashed. Not to mention my nerves.

This house has been in my family since the 60's. We have re-sided it with new vinyl siding, build a nice horse barn, fenced the entire 3 acres, planted 60 or so fruit trees, painted, re-roofed and generally upgraded it in the last 6 or 7 years. I don't want to lose it over obvious misconduct on the part of my mortgage company. If we were rich, we would sue, but that is not something we can afford. There has GOT to be something that can be done, this stuff GMAC is pulling just isn't legal.

Beth

Factoryville, Pennsylvania
U.S.A.

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