Intro Story - What to do! First Franklin

[Joel Fraser]

Hey all, my name is Prem and I live down in the San Diego Area. I came across this site over the weekend and it seemed like exactly the information and help i need to get my mortgage on track. Here is my story:I bought my house in March '05 for 489k. At the time i bought my place I had terrible credit and a 3 year ARM was really the only option I had ( with a pre payment penalty). I hada 3/1 ARM @5.99% (~390k) and a second through FF @ 9.99% (~70k). Obviously back then i did not think that in 3 years when i could refinance i would find my house value down by almost 100k ( according to zillow anyways). By the time march came around this year I called FF to inquire about my refinancing options as i was going into my variable rate in april and they told me that since the value of the house is below the loan value I didnt really have any options.What the did suggest was that they could mail me this "hardship" package that outlined the necessary things to try and get my loan readjusted for another 2 years ( supposedly back to my previous rate). Upon recieving this package it seemd to outline information to send to a 3rd party service which didnt make sense to me. Regardless this was a couple months back and I was anticpating being terminated from my job in the coming months so i figured that until that happend i couldnt justify a hardship.Well I have now been offically terminated. I am in the process of starting a startup with some people but my salary going forward will be SIGNIFICANTLY less than what it was. Basically I cannot afford the payment increase by any means and I am eating away at my savings :(. My payment to FF ( which includes insurance and property tax) went from about 2.9k a month to about 3850. The 5.99% rate on my first jumped up to 8%On top of this all I am getting married this year and feel awful that im bringing this now financial burden into my new marriage along with severly affecting how much we can afford to do for the wedding itself. Im gonna try and search around to see what others did with FF and start the process on my side. Any advice would be great. My first question would be is it better to go to FF saying i lost my job period or that i lost my job and have a new one ( the startup) but am making significantly less?thanks in advance guys.