Any one with NationPoint?

[Mike]

Hey there- I am new to this forum and have read through a lot of the forums- but I haven't found anything regarding our lender, NationPoint. My husband and I had to relocate out of state to care for my ailing father about 6 months ago. Our condo is in San Diego (horrible market right now) and we have basically lost about 50% of the value we paid for it back in 2005. We have tenants in the condo- but the rent is only 50% of the mortgage. We are quickly losing our savings to keep the mortgage payments up- but we have NEVER been late on the payments. We have both our 1st (3 yr ARM Int-Only @ 6.12) and 2nd (15 yr fixed 10.25%) with NationPoint. Last week (before I found this website), I called the lender to ask about our options to modify or short sell the property. I was told our chances were slim given our "current" payment status. However, just yesterday, we received a letter from NationPoint advising us that our ARM is scheduled to adjust in October (we knew this), but if we keep our payments current, they will extend the ARM for an additional 5 years- so our rate and payment will stay the same until 2013. Normally, I would jump at this given the nightmares I have read on this site with getting a lender to even address a modification request. But, even with the same payment, we are upside down about $1800.00 every month in expenses. We tried our best to get a higher rental payment for about 6 months before we were able to even get anyone into the property- so raising the rent is not an option at this time. I guess my main question is, has anyone dealt with NationPoint in getting a short sale approved? Do we HAVE to be late on payments to get this going? Should we just let the property go to forclosure? What are our options? Thanks in advance for any help/advice!