FHA Underwater Mortgage Program is Optional for Lenders and Will Not Help

In my previous article I mentioned that we might attempt to go again the process of loan modification with our lender. Today I am not so sure if this is such a good idea, due to the simple fact that our lender's participation is voluntary. In other words you'd be at their mercy if you chose to spend your precious time on this.

I don't feel confident that my lender would be kind to allow us to modify our loan. We went through the servicer once and they lost all of our documentations. If you had a HUD counselor's help with your process, you might have a better chance, but we did not and now the servicer has nothing on us, but an empty file.

My contact with our lender seemed more promising but that was yesterday. He sounded like he wanted to help us and agree to scanning our documents as proof. What I don't understand is how he was not forwarded copies of our documents in the first place, and if he is indeed the lender he has the ability to handle all processes, even command that the servicer dispose of all of our submitted documents. Sounds very sad doesn't it, but this is the reality you have to live with, and nothing could be done about it, not even a lawyer. I've contemplated whether sending the documents via registered mail or certified mail would make any difference. Save your money for I am saying that even if it was certified that the lender indeed receive your documents, they're still protected because participation is an option not a requirement.

So here we're stock with an underwater mortgage with a few hundred dollars left in the bank, and living off of credit cards, using them to pay our utilities and insurances.

We're trying to be proactive so as not to become delinquent. I am unsure if this is true and I have written before, but I am concern that because my husband's employers checks his credit all the time, not being able to pay our mortgage might affect his employment. In other words he might get escorted out without any reason whatsoever. I'm not waiting to see this happen.

Since our mortgage can be paid by cash, not credit we are using credit for other needed purchases, then hoping we have enough cash left to pay back our credit card purchases on time. This is getting harder and harder now for us. My only plan right now is to borrow from an older sister of mine, though I'm trying not to for she has medical expenses of her own for which she has not paid back fully.

We're hoping winter comes and go quickly because next year my spouse earnings might increase enough to cover the set back. Hopefully we might not need to use credit card as much, because we know how much credit can ruin people's lives.

We have always been current on our mortgage and our credit ratings are pretty good. We are able to maintain this because we do not have cable TV, contracted cellphones, or eat out often.