Loan Modification Denied
Hello All,
This is my first post and its with regards to loan modification.
I tried to work things out with my loan company (Downey Savings) PRIOR to being late on my mortgage, and everytime I was told they cant do anything at all for me except lower my interest by 1/2 a point. So as soon as I missed my first payment (Jan 09), they contacted me and told me to write a letter stating my hardship (Recent divorce accompanied with alimony), so I wrote the letter and shortly there after I received a letter stating they DENIED me due to me having PMI on the loan.
Is it true that I cant do anything at all because of the PMI and that the loan company will be willing to allow the property to go into foreclosure? By the way, I live in California where my house is worth approx $300K and I owe $487K. As well, I have custody of all three of my kids and stated that in my hardship letter.
Thank you for any advice!
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