Mother, daughter fear foreclosure after loan modification

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SURPRISE -- A Valley woman and her daughter say they are caught in the middle of a home loan modification mess so they contacted 3 On Your Side for help.

They thought the modification was perfect and they were all set.

But, they soon found out that wasn't the case at all and, as a result, they thought they were going to lose their home.

Tamara Douglas and her mom, Patricia Ames, love their Surprise home.

"I was just coming off a divorce so this was kind of like my chance to start over and have something that was mine," Ames said.

"We've got a beautiful backyard with a spa I love to play in and so it's really nice," Douglas said.

But recently a few not-so-nice events put a big damper on their enthusiasm.

"The state budget had come through that we needed to save some money and so they put everybody on the mandatory furloughs," Douglas said.

"At the same time, because this was a new home, they were reassessing the property tax," Ames said. "It made our mortgage payment go up over $400 a month instantly."

So Douglas and Ames contacted their mortgage company, Citi Mortgage, to try and modify their loan.

"I immediately called the mortgage company and informed them that I was in this situation and what were my options? What could they do for me?" Ames said.

Ames said Citi Mortgage did modify their loan and they started making the new lower payments, but then she received a notice.

"I got a notice from Citi Mortgage, a computerized letter, stating that they were concerned because I was continually delinquent on my loan," she said.

Delinquent? How could that be? They never missed a payment.

So, they contacted 3 On Your Side for help.

"My first thought was, 'Oh my goodness, am I going to lose my house that I worked so hard to get and keep and maintain every week and every day?" Douglas said.

We contacted Citi Mortgage and they said they would look into the issue, but due to privacy restrictions they couldn't discuss details with us.

But after 3 On Your Side got involved, Douglas and Ames say Citi Mortgage was in constant contact with them to get this issue resolved.

As part of the resolution, Ames says Citi Mortgage agreed to lower her monthly payments by $600.

Her new mortgage is much more manageable and she says she couldn't have done it on her own.

We're not quite sure what went wrong with the first modification, but we do know that on this latest modification Ames and her daughter are thrilled with their new 4.1 percent interest rate and the fact that they'll be able to keep their home