Personal dilemma- Go with GMAC or not? (loans, foreclosure, credit score)

[Tracysherm]

I was totally against all the bailouts, especially of GM, and I've read some scathing threads here on GMAC, but I'm stuck...

I want to refinance my mortgage, and a family member who I love & trust sells mortgages for GMAC. He can get me a good deal. But...

1. I don't like that GMAC is owned in part by the federal government, which means my house will be owned in part by the federal government.

2. I read recently that GMAC has returned to giving high-risk loans (car loans). For a little while, there were articles saying they are even offering car loans to people with credit scores of 620 and lower, but those articles are now not available (I found several citations for articles from Fox Business and Detroit Free Press, which were "no longer available" when I clicked them. Here's one mention of such an article: Auto Loans: GMAC Loosens Credit Requirements
So a company that was failing due to giving high risk loans to people who could not pay them back, and had to be subsidized by tax dollars, is doing it again, and the news articles that were there are no longer there? I know I sound like a conspiracy theorist, but that seems strange and shady to me. Especially when I'm considering going into debt to these people for $150k.
How intertwined or separate are GMAC Mortgage and GMAC auto loans anyway?

3. If GMAC is not a stable company and they fold, and they are not bailed out again by the federal government, what would happen to me if I had a mortgage with them?

4. If they start to fold and do get bailed out and become a government entity, what will that mean to me as a homeowner who has a mortgage with them?

5. Am I worrying about nothing?


I really would like to get the mortgage from my family member if possible, and I do trust him, but not his company. I'm sure all the info he has comes from the GMAC higher-ups and they seem to say everything is rosy.


If it matters, I have a very good credit score, I always pay on time, and there is no danger of my going into foreclosure. I'm sure I can go anywhere for this re-fi, but would like to get a good deal and help my family member, who will earn money on this.

[Escort Rider]

I thought GM was one of the companies which has repaid the federal government in full, plus interest. Maybe I'm wrong about that, and if so, I'm sure someone here will correct me.

[Tracysherm]

I think some stories just came out last week in which they were giving bonuses to managers out of their still-existing "bucket" of government money. I'll look again.

[Tracysherm]

here you go:

General Motors Paid Back Bailout Loans in Full

They paid back the part fo the money that was a "loan" but not the rest of the government money.

http://biggovernment.com/smotley/201...ueled-bonuses/

The government still owns a huge portion of the company.