Mortgage Forum

Joel Fraser

I began to have income problems in October 2007. I have a primary residence where my payment is $3000 a month and an investment property with a 1st and 2nd total payment of 2900. My total bills per month including credit cards and cars is around 10k. In October I liquidated my 401k and pension in order to supplement the income I was no longer making in order to continue to pay all of my bills as agreed. In January of 2008 I began to try and get a short refinance approved on my primary residence. A short refinance is the exact same as a short sale the only difference is the homeowner refinances instead of sell to pay the mortgage company the short balance they are willing to accept. After six months of the run around my mortgage company (Homecomings Financial)agreed to reduce the what I owe (315k) to 152k so that I can refinance based on how much my value had fallen. I got the approval in writing. I was not able to get a refinance however bc my fico is only 620 due to all of my high credit debt and I cannot prove enough income to support my debt without a co borrower. I called them back and asked them to modify the loan and charge off the loan to the amount they were willing to accept since I have never been late with them and I would just continue my loan with them at 152K. the negotiator on my file said that she would not request the investors to charge off my loan balance to get it to 152k because that is not how things are done in the short sale department. she further said the only reason they were charging off the amount to bring my loan down to 152k is bc with a refi or sale they would receive a lump sum but she would not ask the investors to charge what i owe to bring the loan to 152k bc that would mean they would not get a lump sum. i feel like i have hit a wall. I now do not have enough money to pay the mortgage and am about to get my first 30 day late. She told me the loan mod department would not help me bc they do not deal with pay offs that te short sale department (which is her department) was the only one i should be speaking to. Is that true? Should i call the loan mod department and deal with them? I dont know what to do. I dont want to lose my home nor do I want to lose the opportunity to get my principal balance reduced which would tremendously help my affordability of the home. If anyone has any suggestions please let me know