I have filed ch7 (aug 2012) to release alot of really bad debt, and decided to keep my primary residence. The home is worth around 270k, I owe approximately 320k, Suntrust modified me in late 2010, here is how it went
Interest reduced to 2% on 40 year term, interest rate hike every two years to 3.5 percent and balloon of 43k due at 40 year mark.
I am deathly afraid of this coming rate hike, As I am unemployed and low on cash, everything else I owned I let go, but I need to keep this home. I feel it was predatory to Make a loan mod that did not improve my situation at all, it only prolongs the problem of the underwater house.
My initial payment was 2388.00 monthly. then modified to 1231.00, then servicer claims when I missed payments it shorted my escrow account, so they added 200 more to my payment to 1422.00. I counterclaimed The escrow shortage should have been calculated into the mod not added on after.
I am seriously looking into filing a lawsuit against suntrust who modded me into a disfunctional mortgage, but they sold servicing to nationstar who wont budge. Am I better to negotiate after discharge, or go after suntrust who modded the loan....seriously confused. After the rate hike my mortgage will increase again and Im scared. Help?