Please Help! New User!

[Joel Fraser]

:o Hi I'm new to this forum but need help! It's such a long story but here we go............. We bought our house 6 years ago when my husband was making $200,000, cost of house $775,00, borrowed downpayment from dad and we are paying him $650/mo repayment. Loan was $625,00 but it was a neg am for starters and we were going to refi to a regular loan once we settled in. Well life doesn't always go as planned. My husband's employer cut his pay 50% (greedy and bought his own home here in California) just as we had our 3rd son. My husband left and started his own business. Now we were stuck with that neg am and had to refi several times as they were about to adjust to stay afloat and keep our house. Last April I tried to get out of the loan because it was adding way to much to the balance but found out it had a 2yr prepayment penalty so we were stuck. By the time we could get out of the last loan it had added $100,000 and we were now at $900,000. This was September and just when we could have refinanced my father was diaganosed with Head & Neck Cancer and I was dealing with that. So November we get the LETTER that our loan will readjust to payments of $7100/mo from $3400. We tried to negotiate with Countrywide but they said they were to busy with foreclosures and they would get back to us. They did on January 10, 5 days before a payment would then be late. No deal with them, we didn't qualify for a loan modification they said, so we paid the $7100 out of savings and we were able to keep our credit and refi to a 5year fixed interest only at 6.125%, payments are now $4600 without taxes or nsurance. Well the economy is down, business for my husband is down, I'm not working, taking care of my father who is extremely ill and we put our house on the market. No bites. We just ended our 6 month realtor contract and now we are faced with not being able to make these payments since we have been using our savings to help pay the mortgage each month and are out of cash. We would like to keep our credit and our house or downsize. If we short sale, we have no money to buy another house. If we stay we can't make the payments right now. Is there anything we can do while my father is sick? He is living with us for me to care for him. It's difficult to sell a home with a sick parent so staying here would help this situation but adding to our loan while I'm not working will not work. Since we have never been late on payments YET and we no longer have the adjustable rate mortgage, I don't see how we can work anything out with our current lender?????? Stressed out mom/daughter/wife,deb