Mortgage Forum

Mike

I have been a lurker for almost a month now and finally decided to post my story. My story is so similar to many people here. We purchased our home in January 2005 for 585,000. We did a 80/15 so we would have a little bit of cash left over after the purchase. Our first is a 3/27 Interest only and I don't remember what the second rate was at, both loans were with First Franklin. We remodeled the kitchen and in August 2006 with our house appraised at 695,000 we refinanced the second to payoff some bills from the remodel.So we have a first of 468,000 with First Franklin at 5.99% interest only $3023 payment PITI and HELOC of 168,000 with HSBC currently 12.00% interest only $1700(prime plus 6%).Fast forward to this year, our first adjusts to 8.99% on February and the payment is now $4155 PITI and will adjust again in August.I had hopes of refinancing this year because our 3 year pre-pay is up on the first but of course our house is worth around 599,000 (maybe a little less) this puts us at around 106% CLTV.The wife tells me "Honey you need to lower our payments". She doesn't want to pay Interest only anymore and it is getting harder to make the payments. We have never paid our mortgages late but it is getting pretty tight.I have worked for for a company the writes loan origination software so I have a fair amount of knowledge on mortgages. I am thinking there is no way I can refinance our mortgages, mid 600 fico 105%CLTV AND lower our payments with a fully amortizing loan.I search the internet and find this site.All I can say is "WOW!!!!!"I had never heard that a mortgage company would modify their loan terms.So, a month a go I call both First Franklin and HSBC and ask for help. They tell me to send in a hardship letter and all my financials.