Citimortgage loan modification $200 higher now than prior payment! What help:AZ or federal agency ?

The loan officer entered a higher amt in the Income category than he was sent on paper, He said, when questioned about this, that they would not qualify for the loan modification if that number was not used. He said they would lose their house entirely, & would be forced into bankruptcy. The 2nd mortgage company could sue them after the bankruptcy. The additional fees they would owe now are $17,000 in fees. No $ for attorney so what recourse do they have?

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