Modification Asks for Down Payment


LoanSafe Member
Dec 10, 2012
We thought we saw light at the end of the tunnel, but maybe not. Here's a quick synopsis:

In Illinois, in foreclosure, sale date in less than a month. We have an attorney who has been using a series of tactics to delay, with the hope that I'd find steady work. I finally did last month, it's out of state and I've agreed to move next year with the kids just now starting school. Modification sounded like best option - and we were able to begin the negotiation for a modification within the 37-day window. (So attorney can ask for emergency stay of sale date, giving us another month to figure things out.)

We have a first on which we owe 375K. Second is 160K. Home might be worth 400K if we're lucky.

Payments on the first were 1300.

Servicer is Shellpoint. Loan has been sold a few times - lost track of who they just sold it to, since attorney told us has little bearing on case.

Here's the fun part (if you're psychotic): Servicer said that in order to get a modification a down payment in excess of $50,000 would be needed. Attorney checked with them and they won't tell us amount of payment, so this is the bounty that we need to pay to find out if there will be new terms that are even remotely affordable.

Honestly, we're looking to delay everything til Spring - we have kids starting school and one will be graduating in 2019, so moving, graduating, moving again...sub-optimal.

We talked short sale with a consultant who has had success - but the timing wouldn't work. Now, though, that might be a better option - though whether we'll be here just a few more months or longer is a big big question.

At this point, we're certain our credit is shot and we'll need to take our lumps at some point; we're okay with renting in the new city, but the timing is gosh-darn-awful if we have to do this twice in a year.

Love to know if folks on the forum have ideas.


LoanSafe Member
Jun 20, 2017
You owe $535,000 on a house valued at $400,000.

Why do you want to stay in the house? Unless the modification gets you at $400,000?

You are moving next month anyway so you are going to be renting a home for your new job?

Your attorney has not mentioned filing bankrupty? If foreclosure is complete, you will still be responsible for the debt. File bankruptcy and debt is gone.

And do you have $50,000 for this down payment. This doesnt sound like a good deal at all.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
I agree here with Jzone and it looks like you're trying to stay there as long as you can before it forecloses. Bankruptcy should halt the sale of the home as well, I would consider that if I were in your situation.