Unfortunately, your story is the norm on modifications and short sales. Early on in the loan modification business, I noticed that these "professionals" were advising distressed Borrowers to be 90-days late on their mortgages even if their credit was excellent! This was the only way that the modification could be approved. This was nuts! Furthermore, these poor people were paying thousands of dollars to get their loans modified only to find out nothing was ever done. And, they lost their money in the process.
Hopefully, there is a task force working to ferret out these people, and to put them where they belong - behind bars.
Dmh, I know that you've gone through a lot. The positive note is that real estate and mortgages are cyclical. I truly believe that our economy and country will get back to better times. It will take time, but our economy will bounce back. As the result of the mortgage meltdown, we in the mortgage industry have a number of lessons learned, especially in the subprime loans area. No longer will underwriting be laxed or cavalier and not everyone that can breathe will be able to get a loan. Everything now is scrutinized and for good reason. We need to protect you the consumer from ever having the type of meltdown that we have experienced in the last four years. It has been difficult for everyone.
Again, my advice is to wait two more years. Pay down your debt, save your money and you will be stronger financially. You will feel better about yourself for doing it right this time. Borrow using the best of terms that you and your family can afford. Strongly consider the fixed rate products versus the interest only, which has the negative amortization.
Call me if you would like to further discuss. I'm not licensed in New Mexico, but I will be happy to help you with financial advice.
All the best!
Dianne Y. Ayala Steffey, MBA, CLU, ChFC, NMLS#267658
Your Personal Mortgage Consultant for Life!
Sterling Mortgage Services NMLS#373771
2929 Mossrock, Ste 222
San Antonio, TX 78230
210.831.8749 cell http://www.sterlingloans.biz