New Member from Las Vegas

[Joel Fraser]

Hello everyone, here is my story. I bought my house back in 2002 before prices went up with a neg am. The house was built in 1982 but on 1/2 acre lot and it needed some remodeling. In 2005 we refinanced for a 5 year fixed arm at 5.25% for $420K with Countrywide and last year, right before the crisis, we got a HELOC from Washington Mutual for $120K. We took $96K out to do the remodel and in March of this year Wamu lowered our credit limit to $96k due to the drop in market price. At this point we still have another year and a half before our Countrywide interest rate adjusts and the Wamu HELOC is currently at 4.72%. Our problems is that my husband and I depend on our trucking business which has really been hurt by the oil price increase. We are barely being able to make enough to just cover the business and personal expenses. In May I had to cash out my 401k from a previous employer just so we can pay the bills but that money is now gone. We have excellent credit and have never had a late payment. This week I went to Nevada Fair Housing (a non profit agency) but there isn't much they can do to help us. We are not able to refi because we have been operating on a loss. The rep from Nevada Fair Housing said that without at least some positive income she will not be able to do much with the lender to mofidy the loan. They also said we are not late on our payments yet and our interest is not adjusting at this time so we would be put in the very back on the list of other homeowners who need more inmediate help. So, what should we do? They were unable to offer any advice other than to try to lower some of our bills in order to at least show some income before even trying to contact the lender. I don't think we can do a short sale because my type of property is not selling at all (1/2 acre horse zoned) even if the price is low. Nevertheless, I think Countrywide woulnd't care about adjusting or foreclosing since we are not so much upside down on that loan. We owe $420K might be able to list it for $400K. My problem is the $96K HELOC. The majority of the stuff I have been reading is not very encouraging and it mainly pertains to California law not Nevada. We don't know what to do. Should we start getting behind on payments to get their attention. Should I contact Wamu first? Should I contact Countrywide first and tell them I will not be able to make this months payment? Any suggestions would be greatly appreciated. I do understand that this would not be legal advice. Thank you. Sorry our story is so long. I could have written more so please let me know if you need me to clarify any details before any suggestions. Thank you.