Breach of Loan Modification Contract

[Joel Fraser]

June 20, 2008 my wife and I signed a loan modification agreement accepting the terms and Fed Exed them back. Around June 26, 2008 we get a phone call saying they shouldn't have done that loan modification because it wasn't a private investor and they would have to sent everything to Fannie Mae. We were told Fannie Mae would come up with something similar and we should hear back in about two weeks. We called inbetween but no approval from Fannie Mae yet. August 19, 2008, about six weeks later, we get a phone call saying Fannie Mae did not approve the modification. So verbally they wanted us to agree to sending in almost double the amount of the payment agreed to in the loan modification from June 20 for the next four months and then in four months submit a loan modification package again. We asked for something in writing as to exactly what they were asking us to do, but they said they didn't have anything. On August 25, 2008 we sent webmail asking if we should go ahead and send in payments as per the signed loan modification agreement or proceed with legal action. We are waiting for a response back. Our question to the forum is what do we do next.