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MGC, Homecomings, GMAC mortgage / fraudulent activity

1 United States Review updated:

It is a mortage shell game. I'm persuing class action, YOU IN!?


Feb 16, 2009
MGC Mortgage, Homecomings Financial, GMAC complaint by Mortgagescams
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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.

If you have a similar problem with either of these companies, please contact me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it I look forward to hearing your problems, and joining together.


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  • Mi
      17th of Feb, 2009
    +4 Votes

    I'm in, I emailed you. Thanks.

  • Mi
      17th of Feb, 2009
    +3 Votes

    I agree, I'm in.

  • Fe
      26th of Feb, 2009
    +4 Votes

    I just had my home foreclosed due to the same issue. Please contact me Thanks.

  • Nl
      10th of Mar, 2009
    +4 Votes

    My mom is in the same situation. Homecoming modified her mortgage in Sept 08, which she paid on time. She found out that her mortgage was sold in Nov'08 (a company we never heard of) when she tried to make a payment. When she contacted the new lender to pay her mortgage she was told to hold on to it that they were trying to get her note even lower since that value had dropped significantly. She called every other week to pay and was told the same thing. It's now March, her mortgage has since been sold again to Kingdom Capital Fund LLC which I never heard of and can't find any info on and her home is in foreclosure because she had no idea who to pay. The company is trying to get her to sign a deed in lieu and make her a tenant in her own home. Please contact me my email is

  • Sh
      10th of May, 2009
    +4 Votes

    I'm in!! Have had nothing but issues with homecomings and I just rec'd whata they call modification paperwork and my payments will go up $400!!! Yeah, that helps! Not to mention that my escrow has somehow been short EVERY year, they are saying it is short now, but my taxes and insurance have never gone up???? I am being screwed every which way with them and I have had it! I just want to keep my home, too much to ask??? I don't see your email address, but please contact me at, or anyone else can that is having problems with Homecomings!! I don't even have the time to read all of the complaints on the web about these people!! Any suggestions are greatly appreciated!!
    Shannon Bryant
    Salisbury, Md.

  • Sh
      14th of May, 2009
    Best Best Advice +4 Votes

    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.
    I'm in!

  • To
      19th of May, 2009
    +3 Votes

    We want to join a Class Action Suit with everyone who has been victimized like us, by this horrible and unethical company! These crooks are the reason we are losing our home. The company we had before (Wells Fargo Mortgage) when we first bought our place 4 years ago, gave us a good rate and it was "fixed".

    So when it came time to refinance later on, we were conned into this company that gave us a "Toxic Option Arm Loan", without being aware of the damage it would cause. We made it clear to them we wanted a fixed rate just like we had before, but also to bring down the payments lower and include HOA, taxes & insurance. They made it sound so good. Later I found that HOA was Not included in my payments.

    Plus, they would bring down our interest rate really low, and that are payments will be definitely affordable. Our credit was awesome then. Yeah, Right! We struggled for years and did not know what are rights were. They increased our payments so high, it was not even livable. It was supposed to go up a little bit starting after a year, but they promised me not a lot like they did.

    We even had to take a second mortgage, since they told us that was the only way that we could get our loan. Keep in mind this was only a 1 bd Condo and our only home. I'm talking 600 square ft, so very small.

    We were stuck and could not get out of this mess for so long. They kept saying that they would Foreclose if we didn't make payments. Even though we were good about making our payments on time, they still charged Fees. On top of all this we had HOA dues, all together we were making nearly 2, 000 a month. Ridiculous!

    Then without any notice Aurora Loan Services bought Homecomings Financial. We were clueless where to send our payment then. By the time we did, it was noted late all because they switched companies on us. This brought us into a deeper hole and pretty soon we were owing so much more than what the place was worth.

    By this time FHA people called us and said they would help us. We were told if we pay 2, 000 dollars they would be able to Re modify our loan and bring our rate down. Also they would make our adjustable rate a fixed one. We were struggling and could not afford the money.

    Finally, we borrowed the money and payed them. They said it would not take more than 30-60 days to finalize it. Well, months went by and no change. We were getting into deeper debt in the mean time. They said they were waiting for a decision from the underwriter and that took forever. I kept calling them almost everyday.

    There was always an excuse why it was taking them so long.
    These were the hardest times for my husband and I. It got to the point where there was no food to eat and no money to pay other bills. After waiting about 6 months, we had to do a short sale. We lost out on the money we gave to them to help us, which did nothing for us.

    We were scared out of our home and we moved into an apartment. We had been through so much stress, and then I lost my job.
    We received so many calls and threats from Aurora. Our credit was so shot! We explained the circumstances and even wrote a hardship letter.

    All they cared about was MONEY MONEY MONEY! No consideration for the people who were about to lose their only home. We just put it into Gods hands and prayed that He would take care of it.

    Also the Deed in leu was an option for us, but we were never told about that. They never informed us about the possibility to save on our credit. By the time we tried it, it was too late they said. Basically, there was no hope for us. They would have to Foreclose on us on June 4, 09.

    So we put it on the market and there was no offer up until May 26, 09.
    During that time we got a disturbing phone call from Aurora saying there was absolutely Nothing they could do for us to avoid the Foreclosure, (unless) we were able to get an offer Before the 9 days of the Foreclosure date. That would save us from losing our home.

    On May 26, 09. Which was before the 9 days of the Foreclosure date, which was only 2 days later from the call. We ended up signing papers the next day and accepted the 59, 000 offer, which Aurora would not accept. They said it was too late to accept the offer. What??? Even though we still had almost a week left, they changed their mind.

    We got in touch with Dominique from Aurora and he put a hold on the Foreclosure for 30 days, and has asked to do another appraisal on our home in 5 days. Well, it's now June 18, 09, and nothing has been done yet. My Realtor is still waiting to hear from him. Time is ticking away!
    Please I want to know how I can get involved and join the Class Action Suit ASAP!.

    I want to help stop these Predators from doing this to more innocent people. Why can't we fight this and shut them down for good!?

    Thanks for listening and your time, God Bless you & yours

  • Kf
      19th of May, 2009
    +3 Votes

    I am courious of who the class action might be through. I am in a simular situation. Mine went to trustee sale on May 5th 09 all the while i was being told it would be postponed and the loss mitigator will be in contact with me.

  • Ra
      21st of May, 2009
    +3 Votes

    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.

    Rae Godson

  • Fi
      20th of Jun, 2009
    +1 Votes

    I just received a letter that GMAC was going to be servicing my loan. I became Suspicious of the letter and timing due to we are in the middle of a loan modification and awaiting the final result. It sound like a property grap move that they are doing.
    Thank you for this information, i will return to let you know it comes out.


  • Lo
      21st of Jun, 2009
    0 Votes


  • Lo
      21st of Jun, 2009
    +1 Votes

    Sorry that first posting was a test run!

    "Shame on you bought the house, now deal with it!" Hmm are ya'll tired of hearing that overused line?

    Thank goodness I found this site! YES COUNT ME IN!!! Shar...when I read your post, I could not believe how much are situations are a "T". (I have 7 kids - a blended family) Here is my timeline of events with my mortgage:

    10/2003 - Bought house through Sebring Capital (it was an 80/20 loan)

    11/2003 - Sebring "transferred" account to Homecomings

    3/2004 - Interest on big loan increases and does so every 6 months (reached 14.25%)

    5/2008 - After a few repayment plans during the first 4 years, we tried for a loan modification which was approved.

    6/2008 - Account "transferred to MGC but never heard anything from MGC until mid-July in the overdue "hello we are the new loan servicer" much for RESPA. I tried emailing them and left messages, but no one would reply back. There was also a moment when I called them and I was going through the prompts...I pressed 4 for customer service and then click...the call ends. So I tried it again thinking it my mess up...wahlah it happens again and I showed my hubby to prove it wasn't an error on my part.

    9/2008 - After waiting 2.5 weeks of MGC not cashing my double payment...I stopped payment on the check. Good thing too...Hurricane Ike dealt us a nasty blow (I won't even start with the BS with the insurance company). Three weeks after Ike hit, guess who calls...MGC, calling about a stop payment on a check :-) Ahh...that got their attention!

    10/2008 - received a notice from MGC that GMAC will take over my account 11/2008.

    1/2009 - Submitted workout packet for a loan modification and near the end of Jan found out that it was in the final stages of being approved. Asked what were the terms and if I should send in my monthly payment...No I was told, due to the fact that there was a down payment of $800 that would be needed only. Ok great I thought.

    2/2009 - Checking twice a week for the status before ending up in the hospital for pregnancy complications and end up having my baby 6 weeks stay in NICU for 3 weeks and guess what is NOT on my mind for that time period.

    Mid 3/2009 - Learn that my modification is denied but need to send in another workout packet (the other is over 30 days old). Fax in 1st packet...told to give them 5-7 business days to go over the packet, I called and *poof* they never received it. So I fax in again SSDD they can't find it but I can go ahead fill out the Home Affordability Plan I do...

    4/2009 - Fax AND mail it in (the HAP applicatioon) to CYA.

    5/2009 - Application is still being reviewed.

    6/2009 - Began receiving automated calls from GMAC informing me my payment for the repayment plan is overdue...WTH???

    6/18/2009 - After many phone calls I finally get a semi straight answer about my HAP application...GMAC's response is "The investor does not participate in this program." So I asked if that was the case why is the application on their website to download and send in? I was then informed that I would have to pay $1004 a month for the next 18 months. Houston we have a problem! The ONLY way I'll be able to do that monthly paymeny is if I do a voluntary repossession on my car...which I have paid on religiously for a year.

    6/20/2009 - Guess what came in the mail? The RESPA letter stating my account was being transferred from GMAC to...MGC July 1st! BOHICA!!! Wow...I wonder what other surprises are around the corner just waiting to pop out? Right now I am trying to find a private investor that will be willing to work with that I can save my house and not give up my car. I don't want to walk away from this home but...I won't be driven to insanity over it.

    I wish everyone the best of luck and have faith that something will work in our favor!

  • Bl
      27th of Jun, 2009
    0 Votes

    When we refinanced the house in 2002 it changed two times before the ink was dry, then Homecomings had it. We kept Homecomings, I think to Feb. of 2008, then the fun started. It was transferred to MGC, looked it up, did not exist where they said in Texas, tried to call them, no phone #. Was a little leary, so I sent my first payment to Homecomings certified figuring it would get to them. It did. I only kept MGC for about 4 months, enough to figure out where to mail the checks and it was transferred to GMAC. Meanwhile MCG didn't account for the payments sent, they said they weren't paid dadadada, it took the next 3 months with GMAC trying to straighten that mess out. Always good to send them through your bank. Finally get it straightened out in January, 2009.
    I just get a letter this week that the loan has been sold back to MGC Mortgage again. What joy I felt! There has to be something to do. You can't keep going back and forth. Hoping your payments are correctly put on your account. That the company is half legimiate. Brenda

  • Mi
      30th of Aug, 2009
    0 Votes

    I want in! Soooo similar! GMAC is the 4tyh lender to hold my loan, which is fishy anyway, but I have been in the loan modification "process" for more than 4 months now! I was told they "didn't receive my paperwork" so I sent in the paperwork again by fax. Called a week later and they said again that they didn't receive it. So I mailed it. 2 weeks later I call and they say they still have not received it. So I fax it again.

    Finally they acknowledge that they have received it, and I am told it will be 30-60 days before I have an answer. That was 95 days ago. I keep getting told something different by each person I talk to. In the meantime, I have gone from paying $665 nper month to $1180 per month! That is almost DOUBLE my original interest rate! I am in a hard financial situatio due to being laid off in December. They know this. So I think they are stalling on my modification so that they can foreclose as soon as I miss a payment!


    Somebody please tell me how we can band together and legally get through this!

  • Jk
      17th of Sep, 2009
    0 Votes

    We have been goingt through the same issues with GMAC for six months now. We have filed for loan mod three times. The first time "you don't make enough" the second time "you make too much, but we will lower it by $49" and the third time is still being processed! They put us into foreclosure without telling us. In the beginning few months they never said we were in foreclosure, but now every time we talk to them they make sure that they tell us. It went into foreclosure in April and they didn't tell us until July...what a company. I am waiting for our house to be auctioned off without us ever knowing. I wish that someone would start a class action suit, because they would have so many people jump on the bandwagon.

  • St
      1st of Oct, 2009
    0 Votes

    I am in. I have a short sale buyer with contract in hand and I am not getting any response, only an answering machine.

  • Pm
      17th of Oct, 2009
    0 Votes

    Is there a spearhead on a class-action suit against MGC at this time? If so, we're interested. Exact same story as everyone else. The list of concerns/complaints is endless. Please email us at THANKS!

  • Cp
      20th of Oct, 2009
    0 Votes

    Please include me for a class-action suit. Any information that someone has to share, please email me at Thanks!

  • Gn
      20th of Oct, 2009
    0 Votes

    I am having problems with GMAC Mortgage also. The have declined my short sale (have a cash buyer) because I have not been delinquent, but when I ask them so I am supposed to be delinquent first they say they would not advise that. My debt to income ratio due to a seperation is out the roof.

  • Rp
      23rd of Oct, 2009
    0 Votes

    My case is now going to Federal Court, being that GMAC and MGC Mortgage are in the state of TX and property is not. Attorney filed a complaint for me stopping the foreclosure within one hour in May of 2009. Must now go to Federal Court and battle this out being that I have paid almost 200, 000 on a loan that was initially 243, 000 and when they tried to foreclose, are charging me 251, 00 K which exceeds the cost of the original loan. The loan is also interest only until 2030 at which time, the payment will balloon. It is rigged badly. Interest rate was not to go below 9.5 or above 16. Crimeny! I was hanging in there when the interest rate was 14.2. What do they expect a body to do? Raise a family alone.

    Tried to get a modification too as well to no avail. Sent paperwork in one three different occasions. Income has decreased dramatically from what it once was. Then after attorney filed complaint, GMAC tried to give it back to MGC and complaint had to be amended to include MGC. Who are these people?

    This is simply predatory in nature.

    Posting above indicates that MGC said they do not participate in the Making Home Affordable (Obama) plan. However, why would GMAC have that all over their website and people can obviously see from this information whether they qualify or not? Sounds fraudulent. Stay tuned.

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