Loan Modification in midst of lawsuit

[NCHome]

What is the name of your state (only U.S. law)? North Carolina

In Dec of 2015 I began to have problems with my mortgage servicer not crediting my payments to my account and hired a lawyer after I tried to point out their errors and they refused to fix their mistake.

A civil lawsuit was filed and recently (June 1st) there was a hearing on a Temp Restraining Order which we won along with a Preliminary Injunction. Prior to going in to the hearing for the TRO my attorney offered to settle the matter for $25,000 plus the deed to my house (approx $73,000). There was no reply.

Now (two months later), the servicer/lender is wanting to give a counter offer but is requesting I fill out a loan modification before they give their counter offer. My attorney is of the belief that they will offer to reduce my payment plus give some monetary amount.

My question is why do I need to fill out a loan modification when I am not in default? My attorney requested that I continue to submit monthly payments throughout this whole process, even after the civil lawsuit was filed and the original basis for filling the lawsuit was that I was making monthly payments ...they were just not crediting them to my account but instead holding them in suspense accounts, so I have never been in default.

I am uncomfortable filling out a loan modification...as if I'm saying that I am in default. Am I wrong in this line of thinking?

 

[adjusterjack]

My question is why do I need to fill out a loan modification when I am not in default?

You don't HAVE TO fill out the form.

You can refuse to do so and just continue to pursue your litigation until there is a court judgment.

However, if you would like to get this over with sooner and settled with some advantage to you then option 2 is fill out the form and see what kind of offer the lender comes back with.

Filling out the form doesn't obligate you to anything.

 

[justalayman]

I suspect they are trying to work this so they pay or lose as little as possible out of their pockets along with giving you an attractive offer. As jack stated you are not obligated to accept any offer they may toss out.

I would imagine they would be able to make the offer "sweeter" by utilizing a refi along with taking some out of their own pockets.


I don't know what your actual damages are but expecting them to not only consider the loan paid but pay you $25k on top of it is likely to be very unrealistic. If the loan is that small ($73k) and this only started at the end of last year your damages are quite small. Unless there is something not said, I suspect getting above 4 digits will be unlikely.

 

[mrsjohnson]

I'm curious about this case however I see it is a couple of months old. Are you suing for breach of contract? Was your credit score harmed?

Here is a case that might interest some: http://www.msfraud.org/jury-awards-homeowner-$21-million-in-mortgage-lawsuit_4-11.html

 

[LdiJ]

I'm curious about this case however I see it is a couple of months old. Are you suing for breach of contract? Was your credit score harmed?

Here is a case that might interest some: http://www.msfraud.org/jury-awards-homeowner-$21-million-in-mortgage-lawsuit_4-11.html

I am curious as well as I missed this thread the first time around. I do hope that the OP comes back and updates us as to what is going on.

 

[AdjunctFL]

I'm curious also, but curious about the missing facts. The first post notes "they were just not crediting them to my account but instead holding them in suspense accounts, so I have never been in default." Why have they been doing this? Surly they have some reason, especially after you brought it to their attention.