[LHarveyMadman]

Schnelle, I saw your message directed to me in another thread, but I'm replying here since this thread "belongs" to you.

As you have gathered, I got a mod from B of A while current on my payments. I knew when I inquired about a mod, I would probably have trouble getting someone's attention because my situation clearly was not as dire as others.

In a nutshell, I explained my reasons for seeking a modification: to get our from under an ARM, start paying down principal (original loan was interest-only), unable to refinance due to lack of equity. I acknowledged that I wasn't in hardship now, but could be facing a problem in the future when my interest rate resets and I have to start making principal payments amortized over a shorter term. I made a concrete proposal for a modification, and demonstrated that I would be able to make the payments with these new terms.

In support of my request, I highlighted my creditworthiness (I have a FICO score that has been consistently in the high 700s to 800s range), indicating that I have a history of making good on my debts. I appealed to their fiscal sense, but noting the value of a fixed-rate loan on the secondary mortgage market (i.e. a new loan would be attractive to investors). I also told a little about my family and me, and tried to show that we are decent folk who deserve consideration. I know many people will say that these sort of personal stories don't matter, but I think they can't hurt. For the record, the analyst who called mentioned some of these details. So, I like to think that it made a difference.

So it is possible to get a modification without being late, but the situation has be right. I think the biggest hurdle you are facing is that you have a negative cash flow, and your lender probably has determined that even with a modification it would be difficult for you to afford the payments.