[Marshall Rosenbach Esq.]

Quazy - it sounds like you need to pursue a modification with B of A. Find out why they are claiming you don't qualify for the MHA program. It's possible they are misinterpreting what you submitted, or not using the correct numbers. If I were you, before you blow up your credit, why not keep pursuing the modification while your credit is in tact. It does help to have a lawyer but if you cannot afford that, you have to be persistent with B of A.

If they tell you your "income" doesn't qualify for the program, ask why and then maybe you can go over your #s again, modify your budget, and make it work. Of course if you stop paying on the mortgages, you would probably be in a better position to get a loan modification although that is not always so.

Oftentimes I will see the banks become angry with a borrower who clearly, intentionally defaults in order to try to get a loan modification. I think it can benefit you to show that you have spent your life savings to keep your mortgage current. It shows that you really do have your mortgage as a top priority. So in my opinion, it makes sense to try now, while your credit is still in tact. If you get to the end of the run and it is clear they won't modify you, then we will discuss further....but for now, call up B of A and get some answers.

If you get sent to the recording again, ask for a supervisor to get your answers. On your other property, I know B of A will offer very low rates for a second mortgage. On one of my client's files, they lowered the rate to 0% for 3 years. See if you can get similar relief.

Alternatively, maybe if you have a little bit of money saved up, you can offer to settle out the HELOC for a fraction of what is owed. The bank will be amenable to this because you are upside down. On the first mortgage of Property A, you are just going to have to be persistent to get the modification approved.