Legal Question in Real Estate Law in California

It is hard to say without looking at your loan documents, the details of your conversations with them, and the details of the modification. If all they are doing is sending you statements with a lower minimum amount, you are free to pay the old amount and what they have done should have no effect while you get them to clear it up.

It seems to me there are two possibilities here. The first is that your bank has made a mistake and is blithely assuming that you wanted to do the modification......since probably 99% of borrowers in trouble will take a modification of any kind that leaves them even a little better off. The other possibility is that you somehow or other have gotten yourself into a position where you are "in contract" with the bank - or they think you are - for the modification. If I were acting as your attorney, the first thing I would do is look over all the documents flowing in either direction between the bank and you, going back to when you originally took out this loan. I would be looking for anything that the bank could allege makes the modification contractually binding. This could include something in your recent exchanges or, possibly, even in the terms of the original loan.

If there is nothing that seems to put you and the bank "in contract" on the modification, my next step would be to discuss with you why you don't want to accept the modification, including to inquire whether it is reasonable to hope that further negotiations would lead to a better offer.

Last, I would assist you in calling the bank's attention to its mistake and insisting that the original terms be observed. The language of such contacts with the bank would be modified to be appropriate with the nature and extent of your delinquency, if any. It's usually not a good idea for a delinquent borrower to get too uppity with the creditor. That can backfire.