Can a bank change its mind after approving a Loan Modification?

Something else is going on behind the scenes.   You need an attorney to assist you in enforcing the loan modification agreement that was sent.   A good argument can be made that this is binding on the bank.    However, without an attorney they are not going to listen.

You need legal representation in this matter as soon as possible.

Call my office if you would like to utilize my services.

Robert J. Spitz

909 395 0909

If you can prove receipt by them on time (either by a letter or email they sent to you confirming receipt, or because you sent it fed ex or return receipt, etc.), they have to honor the agreement--your obligation was to get it to the bank on time; they cannot then use their own internal failures to excuse nonperformance.

As to the mistake in the calculation: a simple mathematical error, especially one that could be discerned from the loan documents, would be grounds for them to recalculate the loan--though you would then have the right to decline it if you wanted. For example, say you borrowed $1,000 at 5% simple annual interest, or $50 per year interest. If the principal and rate were stated correctly, but due to a type, the annual interest payment was listed at $5, they could recalculate it correctly--the law generally doesn't require people to be bound by simple typos. (Though again, if you now thought that was too much, you'd be on good grounds to refuse.)

However, if the "problem" is they gave you too good a deal, or think now they need to charge you more because the market has changed or they are rethinking how risky you are--that's not your problem. They can't change their mind after the fact.

So regarding the error, find out what it was. Simple clerical error, may be corrected (though if it's still a good deal and you want it, they'd have to give it to you, since you got your paper in on time). But if they just now don't like the terms they offered you, they need to live with that.