I actually really feel like we got the runaround.

We were two payments behind, and could have probably caught up if we kept it lean on other bills. We called and inquired about the Obama modification program - and it sounded great! We were told our loan qualified, and after the financial "pre-qualification" process - it still seemed like a go.

We made all of our ridiculously low payments under the trial program on time and as directed. I didn't fully understand that while we were making these small payments ($936) the full payment of $2100 was still considered due, and as a result $1164 was being added to the past due each month. Plus late fees. So we went from around $4000 past due to almost $9000 past due.... and surprise surprise, didn't get approved for the modification.

Now, they have offered us their Forebearance Plan, in which we make payments of $1054 each month till Jan. Again, the past due will continue to grow. By Jan we will be somewhere like $15k past due. We have owned 3 other homes and have never been past due like this. Our mortgage credit has always been perfect. I am sick!!!

So, I ask them about this and explain my concern about the growing past due balance. I request to get off the modification/forebearance plan stuff and just pay our regular amount again... in which they told me ok, but your past due must be brought current immediately. I also ask them what will happen in Jan - as it seemed that we would be approved for the modification and then weren't.... would that happen again? They told me that they would "try" to work out that Obama plan again, and/or work another "inhouse" modification, but of course there were no guarantees.

Are we just prolonging the inevitable? Seems like we are heading down that foreclosure path as I watch this past due balance grow.

Could I call them and just request a Deed In Lieu?

Other thoughts?

Also, if they do foreclose - will they come after us for any money left on the loan after whatever they get from the auction?

We have nothing in savings - so there is nothing to get - but perhaps they go after future IRS returns or something?

We live in TX, and I know that our state laws allow them to come after the balance - but will they? It's just one mortgage, 30 yr fixed.

Anyone?

Sounds like my Aurora experience. You need to find out why you were denied a modification.

I went through something similar as you, and I too was denied a modification.

EDIT: I even went through their forbearance as well.

Something don't smell right. Have you called HUD or the Homeowner's HOPE hotline 1-888-995-HOPE (4673) to see if they can clear things up or if you can file a complaint with the feds?