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Home > Ask The Get Out of Debt Experts > Bank of America is Dragging Their Feet on My Loan Modification and Citibank is Suing Me. – Angela

Bank of America is Dragging Their Feet on My Loan Modification and Citibank is Suing Me. – Angela

“Dear Steve,

I have been trying to work out a loan modification with my lender Bank of America for several months now. Bank of America granted me a 3 month forbearance to allow me to repair my home from Hurricane Ike damages. During that time, they asked me if I wanted to attempt a loan modification. I said, yes that sounded like a great idea. What a nightmare! It has been delayed and mishandled. What was supposed to take no longer than 90 days is now at nearing 180 days. They are putting my resumed mortgage payments in a category called “partial payment balance” instead of applying to the principal balance to make it look like I am more behind than I am.

Also, I am being sued by Citibank for $14,000 for credit card debt.

I want to file bankruptcy but am not sure. I have been researching and taking notes, making charts like Advantages/disadvantages and still don’t know what is the best thing to do.

Is it best to wait after my loan modification is accepted or should I file bankruptcy now? I live in Texas and we do have many laws to protect homeowners but have heard so many horror stories that I am not sure of anything anymore. HELP!



Dear Angela,

Excellent question. To wait or not wait.

It seems to me that you probably don’t have either a great defense for the Citibank suit or the money to pay that bill. Otherwise, you would have.

But if time is what you need more of then getting sued and losing will eat up part of the clock. You can always ask for a postponement of the court date to delay things a little longer. But that’s just a stalling tactic and not a solution.

Your best bet is to put down the charts and colored pencils and find a local bankruptcy attorney you like. The best time to see a bankruptcy attorney is not on the day of filing but ahead of time so you can work out a mutual plan on how best to work out issues and time the bankruptcy.

It certainly appears that bankruptcy is in your future so I think today is the day that you need to go and develop your game plan with a local bankruptcy attorney.

Call three bankruptcy attorney office and then go the see the one that you like the best. Most of the bankruptcy process orbits around customer service rather than rocket science so you want to make sure you enjoy the office folks.

After your appointment, come back and give me an update in the comments section on what your plan is. I want to know.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • John Wright


    If it walks like a piggy, talks like a piggy, by golly it’s a PIGGY!

    BofA and it’s CEO Brian Moynihan reminds me of that song by John Lennon and George Harrison titled “Piggies” I invite you to listen to this song on youtube and see if it appropriately fits.

    Have you seen the little piggies
    Crawling in the dirt
    And for all the little piggies
    Life is getting worse
    Always having dirt to play around in.

    Have you seen the bigger piggies
    In their starched white shirts
    You will find the bigger piggies
    Stirring up the dirt
    Always have clean shirts to play around in.

    In their ties with all their backing
    They don’t care what goes on around
    In their eyes there’s something lacking
    What they need’s a damn good whacking.

    Everywhere there’s lots of piggies
    Living piggy lives
    You can see them out for dinner
    With their piggy wives
    Clutching forks and knives to eat their bacon.


    Write a letter to the BofA CEO at:

    Divided we might fallen, but UNITED WE MUST STAND!

  • Angela

    Yes, Steve your answer did help me. I was leaning toward the bankruptcy so you have confirmed that this is probably my course of action, next. Also, I did report to my parole officer (Bank of America) today. The person that I talked to told me that I did not make enough to qualify for the loan modification so guess bankruptcy won’t have to be posponed anyway. I protested and said well, why don’t you tell consumers that in the begining before we have vested so much hope and time into this? She really could not answer and even changed the subject. No don’t have money to pay Citibank or would have a long time ago like you said. Anyway appreciate your time. Keep up the good work. Thanks. Angela

    • http://Website bryan

      Hey, how was your “partial balance” distributed after your modification? Was it applied to the principal balance, interest, future payments, or escrow?

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