[yaya01]

I was finally able to speak with a HOPE housing couselor as instructed by Wamu. Well, nothing new. The couselor told me the same thing Nevada Fair Housing and Countrywide have told me:
- Not behind on payments yet since we have until the end of the month.
- Excellent credit rating (806). The housing counselot said she has not have anyone with such high rating.
- S Corp business owner showing loss on income taxes therefore not able to refi. This is in addition to loss of value.
- Lender would not be able to offer better terms since we have 1 1/2 years left on 1st at 5.25% and currently 4.75% adjustable on Wamu HELOC. How would they know if they have not even done my mod?
- Budget showing $45 deficit so according to HOPE we are in pretty good shape to continue paying mortgage if I make minor adjustments to expenses.

So, no other options other than to start getting behind on payments and wait for them to contact me to negotiate. That would ruin our credit but if that is what it takes, so be it. Yesterday CNN had some clips with Suzi Orman and she said if the lender sees you have good credit rating they know you would try to do the impossible to protect it and they would be less willing to negotiate.

On Monday a realtor will be coming over and we are going to discuss putting the house on the market. I think this might also help with future negotiations. We owe $516K. The first to Countrywide $420K and a HELOC with Wamu for $96K (remodel). I checked Zillow.com and shows price at $416K so as far as the 1st mortgage goes we are not that bad. This is of concern to me since I would think that the less they have to lose the faster they would try to foreclose.

According to my husband they wouldn't foreclose that quick because of the amount we owe and buyers right now are looking below $200K price range. I guess that would be something to ask the realtor. I know that even bank owned properties similar to ours have been sitting for over 6 months. They are not even selling at $350K.

What distresses me the most is telling the kids (6 and 10) if we have to foreclose and move. At this age they are not very open to change. Do we tell them the truth or try to make the move as something positive and exciting? Maybe we could trade the acreage for a rental with a pool. I think they would like that.

If we could at least get rid of the Wamu HELOC but they won't even talk to us. I would really hate to lose the house and still have to owe $96K, especially since all the money was put into the house.

Any suggestions welcome. Thank you.