help! foreclosure looming! ALS

[Joel Fraser]

So here's my story. I bought my house in Jan. 2006 and refinanced again in May 2006. My first is with Aurora Loan Services (Lehman Brothers) an interest only loan at 7.87% which sets to adjust in June 2009. A payment from $6500 to $8500. My 2nd is with Homecomings Financial for $142.000.00. I was approved for the loan with full doc. Over the past year and a half my income has substantially decreased due to the economy. I have been in 2 repayment plans for which I could not make and just recently received a letter from my 1st ALS that I was NOT approved for a loan modification. I have pleaded with them to short refinance me for the current value of my home which by the way is $200K less than I owe, plus the 2nd balance of $142K. Which brings me to approx. $350K negative equity. At this point I feel hopeless. ALS has not been helpful. I get the run around every time I call and it seems as though no one knows what they are doing. I think I'm holding out for some miracle short refi for which my mortgage company says they don't do? What to do? Should I short sell? Should I walk? Should I hold on to hope of gov't help? I am days away from ALS starting the foreclosure procedures but want to stay in my home. If anyone out there knows of anything else I can do, I would appreciate it.:confused: