Posted on: 29th Jan, 2010 05:17 pm
I applied for loan modification with citimortgage in may 2009. Finally Jan 2010 I recieved a letter Congratulations your loan modification was approved! what a laugh I thought a loan modification was to make your payment affordable so you could keep your house. Well since I have been making smaller payments the past 8 Months they have added that to my principle bal. and gave me a new payment that is $40 higher than my original payment . This just makes my situation worse. and I have 3 days to agree and sign new terms or decline and pay back payments and late fees. How is this suppose to help me to stay in my home? before applying for mod. I never had a late payment . but I had a decrease in hours at work and could foresee not being able to make all my payments. If I short sale will I be responsible for bal. Please help I'm not sure which route to take with this. Thanks
Hi,
A loan modification is supposed to reduce mortgage payments so as to help the borrowers to stay current on the loan. In your situation, it is just the opposite. Your mortgage payments have increased because of the late fees and charges. It'll not be worth your while to accept the modification offer. You can try and short sell the property. But chances are that the lender will come after you for the deficiency. However, if they do come after you for the deficiency, you can negotiate with them to settle the debt.
A loan modification is supposed to reduce mortgage payments so as to help the borrowers to stay current on the loan. In your situation, it is just the opposite. Your mortgage payments have increased because of the late fees and charges. It'll not be worth your while to accept the modification offer. You can try and short sell the property. But chances are that the lender will come after you for the deficiency. However, if they do come after you for the deficiency, you can negotiate with them to settle the debt.