Ocwen Loan Mod: Do We Have A Chance?

[Joel Fraser]

Hi. Here is our situation. Hopefully someone can offer some advice.We purchased in March 06 with an 80/20 loan $0 down. Our first is $396,000 interest only fixed at 7.375% with ASC and our second was $96,000 fixed for 5 year at 12.25% with Ocwen. We have paid down our second to $87,000 (when we had extra $$). Together our payments are $4000.00 in interest only and an impound account for tax and ins. When we signed our loan papers (with much encouragement from our broker) we were assured that the loan would be refinanced in 3 months. Well, here we are 2.5 years later. Our home has lost almost $100,000 and there is still no hope for refinance. Our home basically started to lose value as soon as the papers were signed. We have been ok making our payments because my husband was working 70 hours a week in the construction industry (I am on a set salary). Since the begining of the year, construction has been extremely slow and he is down to a 40 hr work week and is making about half of what he was. We are not in default yet but I forsee it happening in the near future. Does this count as a hardship??I really want to keep our house but I don't know if we qualify for a loan modification with OCWEN. I have tried numerous times to speak with them but always get someone unwilling to help. I finally got a financial information sheet e-mailed to me but I don't know if our savings is going to work against us. I am not willing to spend our entire saving on a house that is so far underwater if there is no hope of modifying the loan.Does anyone know what the requirements of the modifications are?Is there any hope for us since our loan is not re-setting yet? We have a ridiculous interest rate that I can't see anyone being able to afford for long...Thank you to anyone that can offer any advice.