Need to Modify PayOption ARM loan w/ Countrywide

[SuzieQ]

Hello.I'm new to this forum. Like many, I also have loans with Countrywide (first loan is a 30 year PayOption ARM ($978K balance) and the second is a HELOC ($173K balance). In two years or if I continue to pay the minimum payment up to 115% of the loan, which ever comes first, I will be forced to pay the fully amortized loan based on the current principal balance at that time. I am not far from being there, thus, my loan will increase from minimum payment of $3370 per month to ranging from $6500-$9000 plus based on current margin and interest rate for that particular month. I have been making mostly the minimum payments but for the past several months, I have been making the interest only payment of ranging from $5500 to $6000 plus per month. I am having many sleepless nights because I can't refinance my loans (already tried w/ Countrywide back in 7/07 and was denied because of their "new stricter lending guidelines." If I can't afford to pay the fully amortized loan, I will loose my home. The bottom line is that the broker I used advised us to take this awful PayOption ARM and I didn't fully understand how this loan really works. I am so mad I took this loan b/c I didn't have to. I put 20% ($230K plus) down on my home and should have went w/ a 30-year fixed loan.I desperately want Countrywide to modify my loan to combine the first and second to a 30-year fixed interest only based on the initial rate I was given of 5.5% or even a 30-year fixed fully amortized loan w/ the same or reasonable rate. The way this loan is set up, the fully amortized loan varies from $6500 up to $9000 plus based on the margin and rate for the month. This is very scary and it sets up homeowners like me to fail and be forced to go into foreclosure. I sent my hardship letter (husband on medical leave for past 2 years AND that we are considering bankruptcy) to Countrywide Home Retention coupled with all of the supporting documents required since 12/07 and have been literally calling Countrywide weekly to find out the status of my loan modification. I have been provided different information from different customer service reps and has been transferred to 4 different Loss Mitigation officers since I started this process only to be told back in April 08 that my modification was approved but when I didn't receive any paperwork of the modification I called back and was told it was denied because I did not have enough surplus income (although we had about $500-700 surplus) after income and expenses were factored. Thinking that this would change their minds, I called back in late April 08 that my husband secured a second job and was told that now we have enough surplus income and the investors did not approve to modify our loans because of that. I think Countrywide is giving us the run-around because we have NOT YET been delinquent w/ our payment. Based on the last customer service rep I spoke to this month, she hinted that if I continue to current with my payments, Countrywide will not modify my loans. Countrywide is giving priority to homeowners who have been delinquent 30-90 days plus. So, do I need to intentionally default on my loan to get them to modify my awful loan?And, based on my the type of loan I have, when they calculate income and expenses, are they factoring my minimum payment or the fully amortized payment as the monthly mortgage? Please provide examples on what the heck they are looking for when they factoring income and expenses because I just can't make them happy. I am seriously considering being delinquent in June to see if they will change their minds?Any advice will be greatly appreciated.ALEX