[Trying to Keep Home]

Modification Problems with PNC/National City

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In a nut shell my wife and built a new home in 06. We got a construction loan for National City for 809,000. We finished the house after spending 200K more out of our pocket than expected. The 1.2 million appraisal is gone in the wind! We ended up being forced to file chapter 7 BK (discharged in 08 October) after 20 years of perfect credit. National City in December of 08 gave us a "band aid" loan for two years.

Currently we are several months behind in our mortgage and trying to decide to stay or leave. We have been in contact with loss mitigation and their offer was sell the home in a short sale for 446,000 or reinstate your loan at 815,000 with a 5000 a month mortgage. PNC annalist estimate we could sell the home for 525,000, but i think its worth 600,000++K . The modification offered keeps the principle balance (815,00) this puts me at a $1250 monthly in the hole with a large family of 6, bring home net pay is about 7 to 7500 per month....

PNC will sell anybody on earth my home for 446,000 but refuse to reduce any principal to the fair market value for me?

I have 100,000K cash toward the purchase, but my credit is shot for at least 12-18 months until my 7 seasons a little. Exhausted all ideas for investor friends etc....

Any ideas???