Rental Prop Modification ??????

[lasvegash]

A have a home in North Las Vegas....very hard hit side of town. Bought 2004 with a fixed interest only first and a variable heloc second - originally owner occupied. Got scared market was cooling off in 2007 and refinanced (just in the knick of time) to a 30 fixed 6.5% with pmi.

Last year had to move and forced to rent property. Mortgage + PIT (including landlord policy which is more than my homeowner poliy was) = approx. 2300. Originally properties in the area were renting for 1600 or 1650 - wanted renter fast and went with 1550...then she had to move out suddenly (I am convinced it is because the foreclosures bought by investors are now renting the exact same house for 1200 or 1300 and with the numbers of the forseclosures there sure are a lot of rentals from investors popping up.

I currently have a good tenant paying 1450. However, I am in no way confident that when the lease expires I will be able to get even 1450...more likely 1200 or 1300 if I can find a tenant who is still employed.

Financially it was ok at 1550 or 1600, now at 1450 plus repairs it is tough - add to that my husband, who is not a borrower on the loan, has had some salary decrease.

Last time I checked on zillow I was about 100K upside down in terms of value.

1) Do you think I could get a loan modification now based upon the hardship of inability to rent at prior amount due to rent decrease and increased available rental options in the immediate area?

2) If so, do you think they will lower the interest rate?

3) 2004 loan was through Countrywide. 2007 refinance was through Countrywide. Now my statments come from Bank of America. Who do I contact?

4) Will the fact that I have PMI and are current on my payments, never been late, effect my chances?