Foreclosure Prevention: GMAC Gives Tips On How To Keep Your Home (NAPSA)—Theforeclosurecri- sis is receiving national attention, and financial education is one way GMAC Financial Services is addressing the issue. The GMAC SmartEdge program teaches consumers about the basics of financial responsibility: understanding credit and credit scores, budgeting, home financing options and key mortgage concepts. SmartEdge provides outreach to consumers through public seminars, online programs and community forums. One of the most important points the SmartEdge curriculum emphasizes is to be proactive if you're having difficulty making your mortgage payments. Some additional tips from GMAC: * Don’t wait—ask your mortgage servicer for help. If you have fallen behind on your mortgage paymentor are facing a financial challenge, contact your mortgage servicer for help. You can call the number on your most recent mortgage statement or con- tact HOPE NOWat (888) 995HOPE. GMAC Mortgage customers can call (800) 627-0128. Recently, the Obama administration launched the “Making Home Affordable” program and options are available to borrowers. For more information, visit www.makinghomeaffordable.gov. Educate yourself. Review the terms and conditions of your mortgage and learn about the foreclosure process for residents of your state. The U.S. Department of Housing and Urban Development posts links to such information on its Web site: www.hud.gov. * Get free advice. There are resources available at no charge on a local, state and national level. These resources may help you manage your finances, as well as evaluate your mortgageoptions. In 2003, in response to theris- ing number of homeownersfacing payment difficulties, GMAC created its Homeownership Preservation Enterprise (HOPE) team of loan specialists to provide in-depth mortgage assistance andfinancial counseling to borrowers. This nationwide team offers “homeowners help” workshops and face-to- Keeping your home your own maybe easier than manyfamilies realize. face meetings with borrowers, and partners with national and community housing organizations on homepreservation initiatives. The GMAC HOPEspecialists see firsthand the many reasons homeowners may face hardship, including financial mismanagement, illiteracy, unemployment or unexpected medical expenses. The following options may help homeowners facing these difficulties avoid foreclosure: Repayment (forbearance) plan: If you have fallen behind on your payments, a repayment plan will allow you to make regularfull payments plus a portion of the delinquency each month over a period of time. This “catch-up” arrangement worksbest for homeowners whofell behind but whose financial situation has recently improved. Loan modification: This option maybe utilized if homeowners have seen a reduction in offer to add the delinquency to the balance of the loan and reamortize (recalculate) the loan. Short sale: Selling your home is another alternative to foreclosure. In today’s market, you may notbe able to find a buyerfor your house who will pay what you owe on the mortgage loan. In this case, the amount youreceive from the sale will be “short” the full amount needed to retire the mortgage debt. However, some mort- and making the full monthly mortgage paymentis not possible for the foreseeable future. Loans qualifying for a modification typically offer one (or several) of the following options: reduce the interest hind on your mortgage payments income or increase in expenses, rate, extend the loan term or defer a portion of the loan amountuntil financial circumstances improve. Since homeownersfacing foreclosure have likely missed several payments, a loan modification may gage companies may be willing to take less than the amount owed as a better alternative than having to foreclose on the home and put the house on the market. * Deed in Lieu of Foreclosure (DIL): If all other options have failed and you are unable to sell your house, your mortgage lender may allow you to sign the title of the property over to it. This option may be a less damaging option to your credit than a foreclosure judgment. Again, if you have fallen beor if you are facing a financial challenge, contact your mortgage servicer for help. Call the number on your most recent statement or HOPE NOWat (888) 995-HOPE. GMAC Mortgage customers can call (800) 627-0128. To learn more about automotive financing, credit, mortgage, insurance and banking, visit www.SmartEdge byGMAC.com.
