ARM/Modification with Carrington

[Joel Fraser]

Hello, My name is Jim. I puchased my home in March of 2006 for $350,000 with a New Century Loan. My specs are as follows: 1st-8.1% arm resetting in March of 2009 loan amount is $280,000+/- . 2nd -11.25% fixed loan amount is $70,000. My income has gone down 50-75% since purchasing the home. My wife's income has gone done 10-15%. Our combined income monthly is $7000.00, however with the current financial crisis could soon be less. Monthly mortgage payment is $3000.00 We stopped paying our credit cards 4 months ago. I just paid September's mortgage payments. I've called both servicers-1st-Carrington and the 2nd is HSBC for modification packets. I've hired an attorney for a Chapter 7 BK for the credit card debt. ($30,000). Should I file the BK first and then try to modify, or try to modify first. I called Carrington and they said to modify first, but the guy I was talking to could barely speak English. I thought I would be a stronger borrower without the credit card debt. Also with the bailout bill I thought I might be able to get some help from HUD, or at the least have some more leverage with Carrington. Your thoughts are greatly appreciated. P.S. My home's current value is probably $300-$315,000..thnks jim Boise, Idaho.