[happy breeding!]

I live in California and bought my home 2.5 years ago for $500,000. The terms were $400,000 at 6.75% interest only, set to adjust at 5 years. The second was $100,000 at 9.25 interest only and 15 year balloon payment. Total payment is $3,072. The home is worth approximately $350,000 right now. I have made every payment thus far and have a great credit score of 790. I have asked for help from my lenders since times are getting tough and my wife received a notice of a possible layoff. So, I did the responsible thing and told my lenders that we need help and would like to adjust the rates and terms into more affordable and long term fixed rates that would allow us to stay in the home for a long time. They wanted proof of income and prior tax statements, so we provided it to both of them. One said they received it the second said they didn't receive it. So, the first said "you clear too much after all your bills are said and paid for" we can not help you. Second never responded. Talked to them by phone and said they couldn't do anything unless the first made an adjustment. That was 6 months ago. Clearly times are not getting easier and I have recontacted them several times over the phone since then. I was getting paid overtime and no longer make any overtime money. Now they say send in the documents again, so I did. The numbers I presented to them showed I made $1 less than the amount that was going out to pay for all expeses. This time the response was "financialy unable to afford monthy payments." (no shit, thats why I'm contacting you) This whole mortgage thing is a mess. There is a foreclosed property on my street which has sit vacant for 8 months now. They are unwilling to work with me (clearly), so why continue to make payments to them. I can't refinance ("under water") and by the time my rate adjust I will still be "under water." I can stay in this home for 3 months save money and then rent somewhere else at a lower rate. Save my money for the next 2-3 years then buy again at a much more affordable rate. Tell me why this choice isn't smarter than continuing to pay my mortgage only to end up losing the house once the rates adjust. They have already received $100,000 at this point why give them $100,000 more?

[ek 5]

If you are that far "under water" than you could just walk away. The thing is you are going to have to find a place to rent, and sign the lease before you walk away, because walking away from your mortgage will have a negative effect on your credit score.

[foreclosureexpert]

The terms might not change for you but something you might be able to do is work out a short sale but it is best to get an agent to help you. Its free and one thing I recommend is checking out this site To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. because they do this report that will qualify you with up to 40 different banks or something but also offer free modification and short sale assistance once you join as a member Its cheap i think its like less than $40 bucks and you pay a monthly fee of like 30 dollars to update the report anytime and make sure you get the best loan! they qualify you based on the application you fill out so it checks out your situation..i looked up their number for you on their site ..i got this and it helped me complete a short sale on my house...hope that helps!