Hi,
After reading everyone's posts for the last 2 hours, I decided I feel safe enough to actually admit my problems and ask for help (kind of like they do at AA--but not speaking from experience!) :-)
I just received a letter from Countrywide (today, May 9th), telling me that they are increasing our monthly payment by more than double for the payment due June 1, and yes, it is an option arm loan. We took it out in August of 2005 to pull some money out of our home to finance rental property. We actually went from a fixed loan, with high 700s FICO scores into an option arm, so we could cut our living expenses to support our real estate business. (Of course, the mortgage broker told us not to worry about the loan type because we had great FICO scores, more than 20% equity in our home (even after the new loan), and that we would be able to refi in three years.) However, who knew this is what it would be like three years later. . . Before you resign yourself to the fact that I am an idiot (which I will be the first to admit wholeheartedly that I made some very foolish mistakes, and was probably a bit naive and overly ambitious), let me explain. . . after the stock market crash, my husband and I decided that to be able to pay our kids college bills and have a secure retirement, we would invest in real estate with a local real estate network. So, I took the money we had left, out of the stock market, and bought our first rental in 2002. From 2002 to 2005, we ended up financing 10 properties, all with 5-20% down. All were cash flowing, and I set aside $50k for any monthly shortages due to vacancies, problems or emergencies. We did not spend one penny on anything that would be considered a "toy" and we haven't had a vacation in over 4 years. We've really tried to make our real estate business succeed, but because the real estate market has gone down so much, we now have an overall negative cash flow. Long story short, here we are, 2008--the reserve is gone, due to what is was for: vacancies, tenants not paying and many small emergencies. I think I can find a financial partner or someone to take over the properties, because I do have some equity left in a couple of them.
But the payment on our personal home is more than we can handle at the new amount. And I guess it has adjusted early because the letter said we have exceeded the maximum loan limit. We have three small children, and I am so scared, I don't know what to do. Do I call up HOPENOW for help, or should I call Countrywide first? Will Countrywide even be willing to help me knowing I have rental properties? I've read about the Bush plan that allows anyone who got an ARM loan from Jan 1, 2005 to Jul 31, 2007, who will get a reset between Jan 1, 2008 and July 31, 2008, and who hasn't missed a payment, may be eligible to have the interest rate frozen for five years. We fall into those time frames, and we've never been late on one of our mortgages (yet), but how does it work and is it really true? Does anyone have any experience getting their loan frozen under this plan, and with Countrywide? My husband is a firefighter, so we have a decent, steady income. We also have credit card debt
, but I think we will be able to show up to $250 in excess income.
I would really appreciate anyone's advice so I can keep our home! I will also tolerate constructive criticism as long as it helps! I just need to know what to do next. Please help! Sincerely, a Really Extremely Nervous Nelly who is Sleepless in SoCal
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Help! Reaching out for Everyone and Anyone's Help and Advice! 
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