Loan Modification - 1st w/ Countrywide & 2nd w/ Ocwen

[Joel Fraser]

We originally paid $315,000 for our house and it is currently worth about $200,000 and we have a 80/15. Our first is $240k with countrywide and is interest only at 6% fixed until June 2010, $1235/month. Our second is $39,000 with Ocwen and is a balloon principal & interest at 9.375% until June 2020, $385/month. Plus we have a personal loan for $300/month at 6% that will be paid off March 2010. We are current on all our payments, have a credit score of 785, and have even paid extra with both companies in the past. Things have gotten a lot tighter and being so upside down I'm hoping both lenders will work with us. I started the loan modification process online with Ocwen and put my expense on the high side for everything and after filling everything out realized that if the expenses were too much and the net income not enough they may also not do the loan mod do to them not thinking you could make the payment still. 1. Does anybody have advice on what they are looking for on expenses to net income ratio? 2. What experience do you have with the lender reducing the principal amount? and what suggestions do you have to have success with them reducing the principal? 3. Will the lenders be more or less likely to work with us and give us a good loan modification because we are current on our loan and in less distress? 4. Does it matter or should you start the loan modification with your 1st or 2nd lender first? Thanks for all your help,Brad