Defaulted on Loan Modification - Need Help

[Joel Fraser]

I never, ever thought I would be writing this, but I need help. I received a loan modification late last year from Litton on a 2/28 ARM, and I thought everything would be fine moving forward. However, I fell behind on the loan due to loss of income earlier this year (I am self employed and the economy has not been good this year). I had lined up new contracts/customers to replace the income and had worked out a payment plan with Litton to catch up based on that. Then we had the economy implode and the new contracts were put on hold or delayed. I do have some income coming in, I am actively seeking new work -- including permanent jobs -- and am confident I am going to replace the loss but right now I haven't been able to make the payment plan. Litton has served a formal notice of default and the legal clock is ticking. What do I do? Any advice/help? I have equity in the home, have owned it for 14 years, never was late until the 2/28 ARM. Don't want to sell, especially with today's credit market. Don't know if this is a factor or not, but even with the mod my payments are $600 higher than they were prior to the rate adjusted upwards.