My business is very down, I'm considering loan modification but I have $20k in the ba

[Mike]

Hi I'm 39 years married with 3 kids. I live in San Fernando Valley Ca. I bought my house in Jan. 2006 for 570k. Last I checked my house went down to 470k. I got an 80/20 loan. 5/1 ARM with Central Mortgage and the other heloc with countrywide. I have never been late and is current. The loan is scheduled to re-set in Jan. 2011. My husband who is not in title takes home about 2800 a month. While my business since it is inconsistent and now slow, averages about 1,000 - 1,600 net a month. When we first got the house we had 60k in the bank. But now especially my husband got unemployed from Oct. - March. It went down to around 20k. We don't have any credit card and car payments only the mortgage $3600 and of course utilities, gas, insurance, grocery totalling to 4800 a month. And that's really tightening our belts. No eating out just basic necessities. I am working on trying to boost my business but I feel like my hands are tied with the economy going so bad cost of living so high I'm afraid to take some money that I have in the bank and invest it into helping my business with advertising through internet etc. I'm afraid if I don't do anything right now and wait until my loan is up that it may be too late. And besides any adjustment to be made in my loan now will help a great deal. Is anyone in a similar situation? I've learned through sites like this that applying for loan modification can be very tricky. It's like a game you need to know what to put in your application so you will get approved. I heard that they will only consider the income of the named borrower with that income how can I get approved for loan modification? I definitely want to stay in my house. I'm afraid that our savings will eventually run out. I received the packet I requested from Central Mortgage for loan modification, I have a little bit of a dilema filling it without making sure because like I said I my business tax won't show much and that I have money in the bank. Any advise will be greatly appreciated.