How did I get here (Homeq & Ocwen)?

[Joel Fraser]

My story is much like many people who are fighting to keep their homes. We found a house and we loved it. Sold our townhouse, then ran into our first predatory mortgage broker. Guy was trying to get us to take a high-interest loan because our our low, but do-able credit scores. We walked away. Then met our next and current problem. Some broker who loved to do business with Option One, First NLC, and finally who we have - Ocwen and HomEq. Purchase story: We did an 80-20 loan in Feb 2005. 1st is interest only with HomEq and 2nd is 30-yr fixed @10.5% with Ocwen. Everything was fine until our 1st adjusted this past April 2008. Went from 6.99% to 9.45%. From 2382.80 to 3367.00. WE have good incomes, but this is a stretch. Tried the first loan modification guy in March 08- he laughed at me. Said we didn't have the income with all of our expenses anyway. Never called him back. Just started over last week with new guy and I think he feels the same way. We have been trying to refi for the last 4 months. Appraisal came in low with first bank so we were denied. Second appraisal came in good enough to refi, but no underwriter will approve the loan, just keeps coming back asking for more comps. NOTHING IS SELLING. We live in a high foreclosure area. What can we do? My problem: I don't trust HomEq modification people. I am afraid to send in my paperwork because then they will discover what I have now discovered since looking through my closing documents -the mortgage broker screwed us - our income was INFLATED on the documents. I remember sending in our paystubs, so where did he get those large numbers? We don't even make that much now, but we can afford our home if we can get a better interest rate. If I send in our current info - will HomEq screw us? Where do I start? Please help. We haven't been late ever, yet, I making the payments by the 29th or 30th of the month and the late fees are piling up. If someone could lay out a plan, I am sure I could follow, but I don't understand enough about mortgage servicers to know my rights. I appreciate this site. I am strating to think there is something I can do, but I am overwhelmed. -K