Homeq & Franklin Credit Management

[Joel Fraser]

Hello and thanks for reading. We purchased our current home on June 16, 2006. We have a rate of 7.875 on our 80% mortgage with Homeq and 10.975 on our 20% with Franklin Credit Management. We had a 2 year prepay penalty on our first which just expired 2 days ago. It is an ARM due to adjust August 1, 2008. We had 1 30 day late in October 2007 with Homeq due to a mistake I made in choosing the wrong bank account while making the payment online which they refuse to remove. I have just sent an email to all CEO's at Homeq asking for reversal. We had 1 30 day late in January, 2008 with Franklin Credit Management which they refuse to remove as well, but they did manage to delete the whole tradeline on my husband's TU report which isn't helping. We are current with both but here's our dilema....Our credit cards are maxed out due to hubby only working 3 days per week (trades) and therefore our score is close but not close enough. I called Chase to apply for a re-fi and they said they don't have anything for us. I'm wondering if we should wait a couple more months to re-fi after we pay some balances down and get the scores up, or should I just go ahead and try for a loan mod with Homeq since the 2nd mortgage is a 10 year balloon that I really don't need to worry about just now. Please help with some options...... If they would just agree to remove the lates, we'd probably be better off....emails will tell I guess....