A MGC loan modification is almost impossible to get these days without extensive attorney help as well as a well prepared case. Throughout the Country, homeowners are completely fed up with MGC and their lack of response to qualified, make sense requests for loan modifications, and the amount of fraud and predatory lending that has turned up in MGC originated mortgages is staggering.

Most loans serviced by MGC were sold to them by GMAC, or by Homecomings Financial (a GMAC subsidiary specializing in subprime mortgages). This is not a coincidence; it is my belief that these loans that are being sent over to MGC are viewed as “high risk”, or as one representative of MGC told me on the phone, “bottom of the barrel”. These are loans that GMAC does not want to have to modify under Making Home Affordable. I mean no slander by this statement, and I genuinely hope to be proven wrong, however as it stands this is a true statement!

Before we get into the nuts and bolts of contact information and qualification for MGC loan modifications, here are a couple of sites that provide a good picture of MGC:

If your servicer / mortgage lender is MGC, and you are in need of a loan modification, you almost assuredly need a darn good attorney group to represent you.

Here is a message from complaintsboard.com where one homeowner is taking a stand against MGC:

I had a mortgage through Homecomings financial, which offered me a loan modification, then sold my mortgage to MGC, which did not send statements, or give me any information about my loan. It was finally sent to an attorney threatening me with accelerating my loan, and foreclosing. I talked to the loss mitigation department, who claimed he would look into this matter, and get to the bottom of it, and I told him that if we could not reach an agreement, I would pursue legal action. He never called me back about the matter, but two weeks later, I received notice that they (MGC) sold the servicing of my loan to GMAC. I thought that now I have a legitimate company handling my mortgage, but I was wrong. I have sent it my payment as per the modification, but my check was recently sent back to me, saying not to redeposit, and only full payment would be accepted, and now they would pursue foreclosing of my property. I have counsel advising me on actions to take, and now I need all of you. Those of you that refuse to be “strong armed, and threatened”, need to contact me, for we need to band together, and file a class action law suit in federal court. They picked the wrong person to mess with, now its time to take a stand.

Here is another horrific story from another homeowner:

I am in as well. I have a grueling story as well. Homecomings Financial originally had the servicing of my loan for many years, which was sent to MGC for a short period of time late in 2008 and subsequently overtaken by GMAC as the servicer in October 2008. Have been dealing with GMAC since. I initially bought this property in 2002. Loan was for 243 K. I have been paying exorbitant interest rates for seven years, and was hanging in when rates were climbing as high as 14.2%. At one period of time in 2006, I had many medical bills coming in fast and furious due to a head on collision that I had experienced in 2004, which nearly resulted in my death, however through divine grace, I lived. I support four children alone and have a deadbeat ex that is well over 40 K in arrears in medical support. Homecomings had allowed me to complete a workout package during this time to get caught up (in 2006 when the medical bills for the portions not covered by insurance), in which I paid 3500.00 per month over the course of 13 months to Homecomings. It was honored to a tee.

Then with the recent economic dive early this year, I no longer could afford to pay 12% interest that I am currently at. I talked with GMAC at length. I was again falling into arrears and wished to work with someone. GMAC indicated that they could not stretch any sort of arrearage over 13 months despite what had been honored with Homecomings or that Homecomings had done this, and that they could only stretch the arrears over a 6 month period and keep my payment current, bringing my normal 2, 468.00 payment to $4080.00 per month. Again, I am a single mother supporting four children and have done so for the past many years. I told them this was not possible to do as I had received a 26.3 % pay cut with my employer. (I did pay this $4080.00 once late in Jan of this year after filing my taxes early, but could not after this.) GMAC was heartless and sent me into foreclosure, which was literally stopped today by an attorney obtaining an order from a judge for an injunction. The letter of acceleration I received before receiving the intent to foreclose indicates the outstanding amount to be $251 K .This loan indicates that the interest rate cannot go below 9.5% and cannot exceed 16.5% and is interest only until the year 2030 . Was told by a GMAC rep last night that the investor is MGC. What a mess. I have paid literally thousands of dollars over the course of seven years and they opt not to work with me under the making home affordable plan? And WISH to foreclose? My escrow is short as well and the numerics of all of it make no sense at all. Something is amiss. Sebring Capital is the bank who initially provided the loan. They were located in Carrollton TX, but they closed in 2006. Must have seen the writing on the wall!  Nothing but issues with MGC and GMAC.

And another:

Homecomings has helped ruin my credit when 2 months after closing, STATE FARM contacts THEM requesting payment for our homeowners insurance, which; as AZ Law dictates, 14 months had been paid for in escrow at closing. I have all documentaion from the title company, including a copy of State Farm’s cancelled check…As a result, our 2 month’s worth of escrow account was drained and showed a negative balance, which has since been reported to the credit bureaus regularly, our monthy payment on a 30 year fixed increase $500 and we have been given the ‘…not looking goood…, ‘ regarding our recent loan modification request. Bottom line, aside from AIG, maybe there were other crooked insurance companies benefiting from the mortgage cluster*&%$ and although we still have our jobs (blessing) and weren’t a subprime loan…Our home has an auction date of 6/19/2008. So, for the record and to anyone interested…I’m all in if there are ANY class actions filed against GMAC/Homecomings/US Bank (like we don’t know) and/or State Farm. Good luck to all.

The list goes on; I’m interested to hear your stories regarding MGC; comment below.  If your in the unfortunate circumstance of having your mortgage held by MGC, get attorney help.  Modification Zoom can put you in touch with a great Loss Mitigation Attorney that will force MGC to modify your loan and help you out.  Complete the form at the top right, and we’ll help you get it done.