New Here-Any Hope for Me?

[Joel Fraser]

Well this is my story. My husband works in a family construction business and is paid weekly in cash. When we purchased our home 3 yrs ago, the mortgage company (Nationpoint/First Franklin) used his bank statements as proof of income. Our credit scores were not that great so we got a 6.75% rate on a 3yr arm that comes due in Oct 2008 on the 1st loan and 11.25% on the second. We refinanced the second to get some cash out with Citifinancial at a rate of 14%! The 1st loan is in my husband's name only since he had the better score. The second is in both our names. Now the family business is not doing well and our income has taken a dive. We got behind around Nov 2007 and have not been able to fully catch up. The death of a family member with no insurance and major car repairs for both our vehicles has left us struggling. We are always one month behind on the 1st loan and we're now 2 mos behind on the 2nd. Our credit scores have dropped to where no one will even discuss a refinance with us. I still have a steady income, but we just can't get caught up and fear that when this loan renews, we won't be able to afford it. I'm in grad school and have a son starting college. Citifinancial was threatening to foreclose, but after contacting them, they offered us a reduced payment for six months. My question is, since my husband is the only one listed on the first loan, do we also list my income in a hardship letter to First Franklin? Will they accept his bank statements as proof of income? He has no w-2's or tax returns for 2007. I was told by a refinance company that lenders won't accept bank statements anymore as proof of income. I'm also speaking to a company that wants to charge about 3k to get our loans modified for us. This situation seems hopeless to me. Can someone offer some insight? ThanksShaun