[flagirl4444]

For a payment of $950, you would need about $3k/month income. I would try and settle with the past due credit cards. (just be aware that they will send you a 1099 for the amount they forgive, which may be considered taxable income depending on your situation). You may have more luck settling once they are more than 3 months past due and charged off, especially if/when they are sold to a collector. Either way, I don't think it will have too much bearing on your loan mod but it's hard to know. It looks like you are slightly underwater, so that would probably work in your favor. (too much underwater can increase the likelihood of redefault and makes a loan mod less attractive to the lender, and too much equity makes the foreclosure more attractive as well). If you sent the application back in August, they probably lost it. I doubt they are still processing it. Definitely call and try again, but you will need to have sufficient income to support a payment, whether it's the $950 you want or even less.