GMAC x 3!

[Joel Fraser]

Hello! After cruising thru this site for a few weeks, I have decided to join and ask for direction for our situation. It's similiar to alot of others. I won't bother with the long story. I'll try to keep it as brief as possible. We have two houses, one is rented and the other, of course, is our primary residence. First, I'll start with the rental. The rental has "purchase money" from GMAC with an interest only loan with a 5.75% 1st (resets in 2010) and the second is variable interest only tied to the prime (rate not bad). The problem with this deal is the house is worth $60-80k less than we owe.:o The rent has been dropping as fast as the property values! So, we collect the rent and add approx _$800_ month to it. Like everyone else, we thought we could've sold it by now. *The good news*...the renter wants to up for another year at close to the same rent (leaving us $800 in the hole) and I have my job still! *The bad news*...I have taken a 50% pay cut!:mad:On our primary home, the 1st is with ASC at 6.5% (resets in 2011) and the second is at 12.5% with GMAC on $125k done on a refi. In this case, the house is realistically worth $150k less than we owe!:o I know there isn't a whole lot I can do about ASC, but I've heard GMAC is working with people more often than not. I need to get some help! *What if I just stop paying on the second? Do I have to be late to get some help or what*? We have quickly depleted our reserves. We are current, for now, but now what? I feel like, now, we are at a turning point.:(*Are they more apt to help on my primary residence? Should I try to _tackle all three together_ or _handle them residence by residence_ with different people for the most effective outcome?* Thanks in advance for your input! BTW, great website!;)