Rejecting a modification. 130% LTV

[leoincarolina]

State: SC (judicial)
Foreclosure type:  waive deficiency
last communicated foreclosure sale date:  16 days from today
Home purchase: 1999, right under $150k.  I think it was originally a conventional loan, converted to FHA during one of the mods
second mortgage:  none

last mortgage payment made:  6/2017
lender's appraisal: $162k
an informed/realistic appraisal: $143k
property liens:  $3k civil judgement, $2500 HOA
reinstatement amount:  $31k
Principal balance:  $189k
payoff amount/accelerated amount due: $213k  
My age:  mid forties

 

This is my sixth foreclosure and I'm looking at trail period paperwork so the lender is prepared to make this my sixth modification.  I don't see any terms of the mod in this phase but was told on the phone there would not be a principal reduction. (Never had one in prior mods...was just hoping for one).  They have given no indication of any other loss mit options.  There was a short sale period but no offers on their inflated appraisal/list price.  Did not qualify for DIL due to property liens.

 

Whats different this time is I'm prepared to walk away.  I assume the monthly payment will be close to the three trial payments.  I won't bore you with my personal financial details but I consider the $1300ish per month payment a little too high for me, in this home.  Obviously I don't deserve a conforming rate in these circumstances but I was hopeful they would come back with something lower.  I am considering thanking them for another mod but declining and telling them I will move out by the sale date.

 

I just wanted to get the board's reaction as to what reaction they may have.  I assume they will proceed with the sale but given the colorful history I have with my lender, would it be possible that they drop back and punt?  First time I've ever considered declining a mod and I wonder how a loss mit department would react.  Open to any other observations or advice. 

[SteveSutton]

Why would they punt?  They've tried to work with you within their guidelines and a deal can't be made.  The sales been scheduled and it's time to cut their losses.

 

Edited February 16, 2019 by SteveSutton

[tiggerlgh]

I am shocked they already gave you that many mods. I don’t see why they would hold off with that history.

[centex]

Sixth foreclosure says it is beyond time to move and find something you can afford.  Sounds harsh, but that IS the reality of the situation...

[leoincarolina]

Fair comments by all.  Thanks for taking the time to post.  I declined the modification.

 

 

[leoincarolina]

Plot twist:   Modification declined by me and they abruptly withdrew the property from the impending auction.  When I spoke with someone in loss mit as to the next steps, they responded:  "I'm sorry, I have no idea."

 

Did I inadvertently call a bluff?

 

 

 

 

 

[SteveSutton]

Did you call their bluff?  No.  At some point things will shake out and they will foreclose.  You're not getting the house for free.