Mortgage Forum

Joel Fraser

Well I have two loans. The 1st is with Citi Mortgage at 121K and the 2nd is with National City at 26K. We have had our home for sale for over 2 years and we have not even had an offer and barely a showing. The homes around us are now selling for about 89K and we owe 146K. We need to relocate out of state so we contacted Citi Mortgage to see if we could do a deed in lieu of foreclosure. They approved us to do a deed in lieu but now our problem is with National City. Citimortgage is going to only pay them $2,000 for them to release the lien. We have been going back and forth with National City and not having much luck. Today they made an agreement that they will release their lien from our property and do a loan modification for 24k with a 1% interest rate and leave us with the remaining balance. Now we dont know what we should do. Should we proceed with this? Say we proceed with this and later we cannot pay the balance? What could they do since they no longer have a lien against the prperty?