Central Mortgage

[Joel Fraser]

Can I also get some opinions please as I have become very stressed given the market. I purchased my home a little over 3 years ago for $550k, it is a two-family but I reside in one unit. I recently had it appraised in an attempt to refi but the value came at roughly $470k. I have a first with Central Mortgage for $440k and a second with Chase for $80k. My mortgage rep told me at the time that I would need around $75k to refi, something I just don't have liquid. My Central mortgage is at 5.75% (interest only) and adjusts in 2 yrs, my 2nd with Chase is at 7.75%. I have attempted to call Central to discuss a potential modification but have been told I need to call back around 4-5 months from the adjustment date. While my situation is not as dire as some as I am making my payments, my personality is one that worries about variables. I have perfect credit, and roughly $40k liquid. My fear is that once my Central adjusts and becomes Principle and Interest my monthly debt payments will far exceed my income. I have no other debt besides my house. I have read comments from others who have received the same message, when I call back in 18 months, will they be willing to work something out? Does anyone have any insight or experience calling back at a later date? How about someone who has not paid late or has liquid funds, will they be will to work with them? I am very hesitant to lower my liquid funds as my house is over 100 yrs old and the potential for work is always looming. Any reponse would be greatly appreciated!! Jason