Homecomings Financial- G M A C - Insured $74,000.00 Property for $250,000.00 Increased Monthly Payment and Possible FORECLOSURE Dallas Texas

My daughter Shelita S. Small purchased a townhouse March 24, 2006 for $74,000.00. She worked hard painting and updating her new home. July 31, 2006 Shelita passed away from heart failure caused by treatment of bone cancer.

I had relatives living in the house the mortgage was being paid each monthly. The 2007-2008 year the lender GMAC added a flood insurance insuring the townhouse for $250,000.00 which an increase of $3,576.70 was added to the yearly payment. I contacted GMAC and explained she was deceased; they refused to discuss the matter because things were in probate court. I finally sent them information they refused to take the extra charge off. I explained the townhouse only cost $74,000.00. The monthly payment increased $298.05 whiched caused the ,pnthly payment to be was $1,097.06 which did not include the maintance fee.

For 2008-2009 year GMAC increased the yearly payment again, $4,158.00 plus $201.66 surplus tax which total $4,359.00 which is an increase of $363.25 per month. The monthly payment has changed from $1,097.06 to $1,162.26 with an interest rate of 9.516%. This is a two 3/2.5 townhouse and it does not include the maintenance fee which vary month after month.

Mortgageit wrote the loan and sold it to Homecomings. When the property was purchased Fidelity National Title shows the area was not a flood area. My daughter purchased extra flood insurance through AMICA General Agency for contents at the time of her purchase. My daughter signed a paper stating the personal property securing the loan is located both in a Special Flood Hazard Area as determined by the Director of Federal Emergency Management Agency, and in the community participating in the National Flood Insurance Program. In such event, unless a different standard is permitted by law or and such standard is imposed, flood insurance shall be purchased in the amount of the loan of maximum amount available under the NFIP, whichever is less.

GMAC has over insured the property which caused the my relatives to move out because the monthly was too high. Now GMAC wants to foreclose in July 2009 because I can't make the payments. I NEED HELP I tried to sell but no one want to purchase. I have a renter but they will not assist because I work a home based business and don't have a study income. The town house with a renter would pay for itself.

I received a class action suit Francis (((REDACTED)))plaintiff vs. GMAC Mortgage Group etc... This class action suit stated:
In the action, Plaintiff asserts certain fees charged by defendants were marked up in violation state law and 12 U.S.C. 2607 (b) and its related federal regulations. Plaintiff contends that there were disputed flood service fee payments of $9 for class members whose loan closed between January 1, 1999 and February 28, 2002 and $1 for class members whose loans closed between March 1, 2002 and August 31, 2005.
By settling this lawsuit, Defendants are not admitting that they have done anything wrong. Defendants deny that they violated an state of federal law regarding the claims asserted in this lawsuit, and deny that they have any liability whatsoever to Plaintiff or to the Class.
Under the proposed settlement, Defendants will pay $650,000.00 for payments to class members and for legal fees and expenses.

Will someone HELP ME! I want to keep my baby's home for her brother.

Shekesmom
Houston, Texas
U.S.A.

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