Told I failed HAM Now what

[lydiam]

I have a first mortgage with citi for $87,000 and home equity line with another bank that I owe $95,000. I had to wait for them to get my home value which they say is $175,000 they said because I only less than half of what my home is worth I should sell it. They do not consider the equity line loan. The mortgage I have with them is a 15 year mortgage we are not behind on our payments yet. We are self employed are business is not doing well because of the economy my husband has been looking for work to supplement our income but has not found anything yet. We have been living off equity line which is almost run out are credit is good. We cannot refi because we don't show verifiable income to cover payment. I have spent hours on the phone being transferred to from one deparment to another. They have customer service people that are hard to understand and not very good at explaining things. I also got letter from a third party vender they said are working for citi they really did not know what they were talking about. I quess we have to wait till we exhaust all our funds then just let them take our home. I am tempted to just go spend everything max out all my credit cards take a month vacation traveling and then just let my credit go to the toilet. It is such a terrible feeling of being in need for help and willing to work to pay for it just wanting them to extend the terms of the loan and payments to something we can afford. they said I can submit all the documents and they will send it to fannie mae for review but that i don;t qualify for ham that there system tells them i should sell my house. This is really stressfull and taking a toll on my husband and I, the kids are also worried about even though we have not told them everything that is going on they can sense something is wrong. I try not to worry about things I cannot control but when it comes to your home it is really hard. If anybody has any good advice I would love to hear it.

[SillyWorld]

If you have an FHA you can do a streamline refinance, the 1st to at least 30 yr at 5% would have to give you lower payment

[Elora123]

Try NACA, that's what we are doing. It may take a bit longer but they may be able to help you.

[Evan Bedard]

Hi Lydian welcome and thank you for joining.

These lenders are difficult and were sorry to hear you have exhausted so much ttime and energy just to be shut down. Since your first liens investor is Fannie Mae you might qualify for the MHA program. Here is a link to its guidelines:

http://www.treas.gov/press/releases/...es_summary.pdf

Also you can try to go through NACA. They are a nonprofit organization that that will help you through your modification.

Here is the link to the site.

https://www.naca.com/index_main.jsp?language=null

[lydiam]

I am confused isn't MHA the same as the HAM they say I failed? Where does this 2nd mortgage stuff fall into place I saw on some other posts that people that owed over $100,000 settled with there lender for 10% of what they owed. Should I contact my Home Equity which is a bank but I don't think it is the same as a second mortage. This is all very confusing and my case is unusual because I owe more on Home Equity that on first mortgage. Plus I have a 15 year loan for the first which I have paid on for over 7 years. Do you think if I submit all the information to Citi they told me they would send to fannie mae for review that would do something? or wait till he equity line is gone and i have no way to pay either and then that will force there hand? I just hate the thought they could force me to sell my house.