Ok, here goes. I purchased a town home in Oct 2006 for 310K in Inglewood, CA. My first is $248K at 6.375% ARM - interest only for the first two years and it will adjust in November of this year and then my second is $62K 30 year fixed at 9.6%. Unfortunately, my income has decreased and my expenses have increased. I graduated from grad school last year and my grace period ended in December 07, so my student loan payment is $510/month. With my taxes and HOA dues, I can no longer afford my property and was hoping that
CW would do a rate modification for me. I have excellent credit and not once have I been late on my payment. Well I call in on Feb 11 to the Home Retention department and speak with someone regarding my situation. We go over all of my expenses and determine that I'm negative all most $400 each month. She tells me that it looks like I would qualify for a rate reduction on both my first and second that would ultimately reduce my monthly. She then tells me that she will submit the request to the workout department and that I should fax in a hardship letter and my last 2 paystubs immediately.
Well I did that right after I ended our call. She said that I should hear something in a week. A week goes by, nothing. I call and am told it takes 30 days for review. So even though I've been told it will take 30days, I continue to call each week to see if there are any status change because my March payment is beginning to approach and it will be difficult to make. Still, am told that it's is being reviewed and there has yet to be a workout negotiator assigned to my account.
So finally I call today and the rep I speak with tries to tell me that they do not have a request for me. I tell her of all of the times I called in and the reps I spoke with, particularly the one who originated the modification request. Finally, she decides to look at the second loan and there she finds that the rep only submitted the loan modification request for the second loan, not on both, and that it was denied on Feb. 28 because it is a fixed-rate.
Fine, I ask what about the first. She said well since my income is negative each month, I don't qualify. I'm like, wouldn't that be a reason to qualify someone so that they can afford the payments given their new financial situaion?? Well, she said it doesn't work like that. She also said that since I'm not within four months of my rate being adjusted, there is nothing can do and she would reccommend I try to supplement my income or decrease my expenses. This is not what the original rep told me nor did any of the others that I've spoke with over the last 4 weeks mention that I would never quailify. Futhermore, the request never made it to the workout deparment and I'm told that it won't because I wouldn't qualify anyway because of my income expense ratio. I feel like screaming from the top of my lungs. This just doesn't seem right. It's like they want you to get to foreclosure status. I mean that is what very well may happen without any assistance from
CW.
Is this right? Do you have to be approaching your rate adjustment in order for
CW to consider a loan modification? There's nothing they can do even if I can no longer afford the payment as is? It just seems wrong and unfair. I don't want to give up, but I don't know what else to do. I've put the home on the market and they told me that I have to have it on the market for 60days before I can begin discussion of a deed in lieu. My neighbor with the exact same unit has had hers on the market for 120 days and NOTHING. She even reduced the price by $25K and still no lookers.
Any advice is appreciated. I just don't know what options I have left other than to let it go and try to request a deed in lieu (a short sale would be optimal, but given the market and the fact that there aren't any buyers out there right now, this is highly unlikely)
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Trying to do a Short Sale - but may request a DIL or go into Foreclosure 
....this still doesn't make sense to me as to why they would deny me if I can't afford it as is. 
Also, I'm in California and I did an 80/20, both loans for the purchase of my condo, so I read that they cannot come after me for deficiency judgement, correct?
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