Once again we were turned down for a modification and now we are deciding on SS or Walking. 1st is $310k with Freddie (serviced by SunTrust). 2nd is $40k with SunTrust. We stopped paying in August 2010 and are behind approximately $50k in payments now. Paid $408k for house with 20% used as a down payment. Current value is $170k. House is located in Florida.
When we stopped paying it was do to some bad advice we received from a friend. The advice was that the only way to get a modification was to stop paying to get the attention of the bank. We timed it around my wife stopping work. She is a teacher and does not get paid in the summer so we had a lose of income. Hoping the bank would respond quickly, it took about 1 year for the first rejection.
Latest rejection came last month after 3 months of discussions and paperwork/financials. Now SunTrust wants us to update all the same information. Problem is, since the last submittal, I have received a significant raise so we don't want to resubmit any updated financials.
Any advice? Appreciate any comments.