Best bet is to refi with them or another lender, but most likely your upside down and your income may not meet their lending guidelines.
There is no fairness to those of us that pay and are border line for the new tougher lending requirements. Isn't unbelievable that the banks will tell you when you go to reduce your payments that you don't qualify for the amount your looking for. Just keep paying with those higher rates. Sort of an oxymorron.
When you contact your lender ask them if they have access to the HARP refi which allows banks to refi people with less than 20% equity and not have to pay MI. All the best.
Immediately contact the lender your mortgage is being serviced by. If your credit is still good they may offer a streamline refinance with little to no cost to you (usually big box banks like Wells Fargo have these types of programs). If you go down the road of a loan modification your in for a long haul and frustrating wait.
When it comes to your home, I realize this becomes very personal and seems like it's the last thing you want to lose. Consider some hard thinking about what life would look like without the tremendous stress of holding on to your home versus selling. You have options, some last resort options but realize you will do just fine if you need to get rid of it.
Your best first step would be to contact your current lender to see if you qualify for any of the HAMP mortgage relief programs. You can learn more about the programs and the qualifications here: http://makinghomeaffordable.gov/eligibility.html
If your current lender won't help you or you don't qualify for the mortgage relief programs then you might consider a complete refinance if your situation allows and you can do that with your current lender or any other lender for that matter.
If you are in Western MA, I'd be happy to refer you to some local lenders in our area who might be of assistance.
I wish you the best!
Park Square Realty - Westfield MA
Western MA and Northern CT REALTORÂ®
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