[LHarveyMadman]

HopingtoFind, the way I made my case is by focusing on the future payments, not the current payment and current surplus. I highlighted the fact that because of credit market uncertainty, there was no guarantee that I would be able to refinance my mortgage when the first adjustment arrived. So it wasn't a current hardship (which I admitted in my letter) but the risk of a future hardship.

Also, I believe that modifications are also made based on the lender's opinion about the borrower's future ability to pay. If the lender gets the sense that even after a modification the borrower is still at risk of default, they may deny the modification because they feel that the ultimate outcome will be the same. There's reports now that half of all borrowers who received modifications are in arrears again, and the lenders are probably becoming more selective about whom they offer modifications.