I'm being told I have to be late

[Joel Fraser]

I purchased my home 6 years ago and after living in my 4-family home for 5 years I was told about this great loan that would allow me to move into my own home. Thats when my life turned all around. I refinanced my now, investment property and took out cash to put down on my primary residence. I currently have an Option ARM loan with Aurora (Lehman) which what started out at $436,000 and now its up to $455,000 a year and three months later. I pay the minimum payment of $2775 (including tax and ins) at an interest rate of 7.75%. The house in this market is not worth over $415,000. My primary residence is a Conv ARM with Countrywide with an interest rate of 6.75% I pay $2640 with taxes and insurance. The loan is for $331,000 and the house isn't worth over $300,000 in today's market. Now herein lies the bigger problems. After taxes I clear $2580 a month. My tenants who are always very delinquent give me total monthly $4800. I have to pay one electric bill at the rental property of $225.00, water bill $100, my electric $210, cable, phone internet $175, gas $300, groceries $300...end result: a negative cash flow of $386.00 every month. In order to make things work I have depleted my savings and after that was all gone I let the overflow go onto my credit card. So I got part time job to help out and keep the house and not loose both and I make about $600 after taxes with the part time. So now I show a surplus of $150 or so. My hardships is prior to the closing with Aurora I was shown very different figures than at closing. On both my houses a month after moving in my taxes went up considerably as did my insurance. And my long term boyfriend moved out who assisted me with the mortgage. I am not deliquent on any of my payments however I have been told that in order to receive any type of relief I have to start being delinquent. I dont know what to do. I can't carry the mortgages anymore and it doesn't make much sense anyway with the negative amoritization on the investment property anyway. Both homes are in New Jersey.