I am in the loan modification process with DCU(second loan modification). My income is significantly reduced due to my wife disability. I had to stop payment for them to start working on my modification. Now I am 60 days behind and not paid for 2 months. After 2 months non-payment, they verbally discussed my new modification to be $950 (less by $200 than the original $1150 )and my new interest rate would be 8%. My house is underwater by 120k . I did not agree to this and now they are threatening me foreclosure. I did talk to them that my house is underwater and they would not get anything if they foreclose. But they are not ready to discuss anything. My first loan is in the forebearance with wellsfargo. It ends in march and I will know how it goes- whether I would receive a perm modification or not. Based on the first loan modification I have to decide how to handle the second with DCU(shortsale ?)
I want some advice on this. Please someone help me in finding a way out with DCU as they are calling me every week and threatening me they would foreclose if I dont pay them their dues.