The new stimulus package from Obama might provide you with some relief without you needing to sale so I would hold on a little longer to see what is offered and how it impacts you. There is talk about creating easy refinances down to a 4% rate. This could save you a significant amount of money on a monthly basis depending on what your current rate is. So far there is no help for those with jumbo loans so if you are a jumbo loan then you might want to react now. The government is attempting to help the housing market and foreclosure rates. We could argue if the government should or should not help but they are attempting so we should all pray that their efforts go rewarded because we would hate to go this far in debt for failure!
You have an excellent credit score according to you and that is priceless right now. A score in the 800's is a score to be really proud of. You want to do all that you can to protect your credit score.
Otherwise if your monthly payments are truly too much for you selling your home and renting for a while may be one of your choices or buying a smaller less expensive home to keep your monthly payments lower may be a good option..... but you need a good area Realtor to provide you with your options and the financial side if you were to sell and downgrade.... Your local agent, if experienced and has practiced in the area for a while, will be able not only to tell you in what range you most likely will be able to sell your home (the costs involved in that sale!) and what lower priced properties in the area are available for your to purchase (and again the cost involved to buy.... as for all of them you have closing costs!)
If you know and trust an area REaltor contact him or her, if not and You would like me to recommend a trusted Realtor Colleague to you just let me know and I will.
You sound with your credit score and paying on time like someone who should not have to struggle... so
good luck to you.
When you say that you can break even on your house is that based on current sales? It is definitely a buyers market, that is not to say that prices may continue to drop, but you may be in a position to make a lateral move that would make sense for you. Keep in mind buying and selling do involve costs and you should take into account the transaction costs.
Marlene Howard, ABR, e-PRO
Prudential Florida Realty
You have hung on this long, why not a little longer??
The links below may explain a few things regarding your question on a loan modification. Good luck.