My suggestion is that as a homeowner you stay on top of the news. Write to your Public Officials, demand that this situation is addressed and look at the reports that just came out indicating how little progress is being made to offer homeowners loan modifications. Lenders/Servicers are sitting on all the funds issued so they can help homeowners but they will find any excuse to deny a request. Its no secret that the Investor that owns the Loan loses nothing by foreclosing on the house.
I do this for a living! Every day I help homeowners get loan modifications and avoid foreclosure. It is one of the most difficult tasks I have yet to encounter. Banks are not eager to help. The person at the other end of the line has nothing to gain or lose by helping a homeowner. They are overwhelmed with work and its not their fault that we are in this mess. Please people get real and stop sending people to sites like "Making Home Affordable"
Best of luck!
Broker Owner/Foreclosure Expert
Exit Platinum Realty
It's hard to say why a bank would want to spend the money, there are so many variables to your relationship with them. I am a little surprised in that you have asked to go from a 10 year to a 30 year and they aren't willing to help out.
How long have you been paying on this mortgage? Is there any chance you can refinance through another lender?