I have a motor home financed through Citizens Bank. They did a loan modification a year ago. That reduced my monthly payments by almost $450...

Question

I have a motor home financed through Citizens Bank. They did a loan modification a year ago. That reduced my monthly payments by almost $450.00 per month. last month I was notified that the payments would be going back up to the original amount. The motor home value is approx. $55,000. less than the outstanding loan. I have tried to get them to keep the modification terms or even re-do the interest rate. They say NO. I live in Calif. Citizens Bank is in Road Island. Can I do anything?

Answer

Your loan modification would presumably be a contract. Contracts can be enforced, even in Rhode Island. The bank knows this. If the bank has notified you that the payments are going back up to the original amount, two things are possible: (1) The bank is breaching its contract with you; or (2) you have done something, or have failed to do something, that amounts to a breach by you of the contract.

Which is it?

If #1, get a lawyer to go to court on your behalf to enforce the modification agreement.

If #2, be prepared to suffer the consequences.