trying to modify

[bubby]

We lived in a condo for 2 years (bought in 05 for 408k). Located in Bay area , CA
We decided we needed more room, so bought a bigger place. We decided to rent out the condo in hopes the market would pick back up.

So our current situation is Ive had a 40% drop in income and can no longer afford the condo. Its rented for $2000 a month and mortgage. hoa special assesment is $3200 a month. Im now 30 days late. (Ive already gone through 5k savings) I have a 80/20 loan with B of A.
I faxed them off a hardship letter, expense sheet, pay stubs etc on Monday. I called them yesterday, and they said I would not get a modification. (they said that decision was made 2 weeks ago?!) I showed a surplus of $200 on the balance sheet. I wonder if that was enough?
Should I try calling again and try to get principal taken off the second?
I really want to be done with it! I think its only worth $300k now?
Its currently rented. I have not said anything to them yet.(renters) . (I want to give them at least a month notice if it forecloses) The lease is not up untill Septemer.
I have not refinanced it. Since its a rental, can they come after me when/if it forecloses?

Im also going to try and modify the house loan. Its also 80/20, but 7.1% first, and 8.5% second. Its with suntrust. Anyone had luck with them?

Thanks so much. Starting to freak out!

[Moe Bedard]

google the information that you are looking for on Suntrust