Foreclosure After Permanent HAMP Loan Modification?

Question: Dear, We applied for the government's Home Affordable Modification Program (HAMP) in July of 2009 and finally achieved a permanent modification from Citimortgage. The past few months have been fine and we have had no problems making our new monthly payments. In fact, we actually just got out permanent docs backed signed from Citi just a couple of weeks ago.

But all of a sudden we received three notices in the mail telling us we owe over 10k in past due payments alongĀ  with late fees and if we do not pay this amount within a month they will pursue foreclosure. From my understanding the modification is complete since I received a signed copy back from the bank.

What do I do if my lender is trying to foreclose after receiving permanent loan modification?

Answer: You are definitely not alone on this. We have thousands of homeowners in our forum here just like yourself who have gone through the HAMP program. Some of them have also kicked out of the modification even after receiving a signed copy back from the bank and making the modified payment for multiple months with no questions. This leaves you owing thousands of dollars in past due payments and a risk they will pursue foreclosure.

This is something that cannot be tolerated and you need to do all you can to make sure the agreement does not get canceled.

The first thing I would do is call in and request to speak with a supervisor/manager and explain to them that there has been a mistake and you have a copy of the modification to prove it. Sometimes it can be as simple as getting the right person on the phone with enough authority that can have your account changed accordingly with the terms of the modification both parties have agreed upon. Unfortunately, this is not always the case and some servicers will cancel out the modification anyway even though you have proof of the agreement. This is where things get tricky.

One strategy some of our members have been using recently is taking their permanent loan modification agreement (signed by the bank) to the county and having it recorded against the title of the property.

This way if the lender still tries to push a foreclosure even after everything has been finalized you will be able to fight this in court because you have proof they agreed to modify the terms. You may have to go as far as filing an injunction at the courthouse if the lender files a foreclosure date, which may cost you a few hundred dollars in fees to do so. However, since you have the modification agreement recorded against the deed the judge should dismiss the foreclosure accordingly with the terms of the agreement. This is an excellent strategy and will help you make the lender accountable for the terms they have offered.

You can also try filing complaints with the following agencies. In addition, it may help you to contact your local media stations and elected city, county and state officials. We have witnessed many people receive help once they start contacting the media and become the squeaky wheel that does not stop squeaking.

* Call 888-995-HOPE or visit
* File a Complaint with the FTC
* File a Complaint with the OCC
* Write Your Senator Today! State Senator Contact Info

If you are currently pursuing a loan modification or maybe you had your loan modification canceled by your lender we strongly encourage you to come join our free forum here on Our forum now has a grassroots community of over 37,500 homeowners and mortgage professionals alike. Here you can equip yourself with all the knowledge you can possibly need to achieve a loan modification or any other type of loan workout you are pursuing.

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Moe Bedard
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My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.
  • CarrieM

    We had out nightmare with CitiMortgage begin in July of 2009. After a huge dance/runaround, foreclosure case filed against us, modification offer closed without telling us, a new modification offer, accepted new offer. 4 months of payments under the new modification offer, Freddie Mac did not approve the modification?? What, where was that technicality written into anything? Citi is still taking our payments, Foreclosure case is still dismissed, I have no idea what to do now.

  • L B

    Petition the Obama Administration to take action on the HAMP Abuses

  • janice harper

    we too are having an issue. Received a permanent modification through Bank Of America one year ago. Have made all the payments on time, even got a letter from them telling us that they have put some money toward our principal because of our outstanding payment history, etc.
    Received a Fed Ex package from them telling us that we were offered a modification, and didn’t accept it, so now we are no longer eligible for it. That is just bull! We have called everyone there, and yet no one has called us back. The lady who signed this new letter doesn’t even work there anymore! I am taking the advice to file our notarized modification with our deed. This is insane, and I will not let BOA get away with this!