Trying to work on a loan mod with Fremont

[SuzieQ]

Hello everyone! I am new to the board, my name is Kim and I live in Wisconsin. My husband and I bought our home in July of 2006. Our loan details are as follows:Loan 1 - 157k @ 8.55%Loan 2 - 27.5k @ 11.75%Our loan is set to adjust in July or August of this year. Now I need to step things back a bit. When we obtained our loans, our credit scores were not the greatest. My husbands were in the low 6's and I actually didn't even have one. I had never had a loan or credit cards of any sort. We obtained our loan and everything was great. We could afford these payments and were fairly secure knowing that we could refi prior to adjustment. (idiots)Less than a month after we closed my husbands employers announced they were selling the business and my husband was out of a job. (Grrrr - he had worked for them since high school and they KNEW we were doing this). At any rate he took a job at a considerably lower salary - we continued to make our payment, but our credit cards started taking a pretty good hit. Basically we are behind on ALL our CC payments but have kept our house payment up (I was late ONCE recently - only by a few days, but I we are taking a hit for that - it was totally my mistake not transferring money into our house account). AT ANY RATE, we can't refi, and our ARM is adjusting soon. 3 weeks ago I talked to someone at Fremont to start the loan mod process. She was VERY kind, but really had NO idea what she was doing. When I called today to check on the progress, it hadn't even been filled out properly and was never really submitted. The person I spoke to was very helpful, completed the process and forwarded the info on. HERE IS THE KICKER. She stated that a letter went out to us on Friday stating that our loan had been transferred (sold? not sure what word she used) to Litton. She wasn't sure if we would be able to do a modification at this point...... She did say there was hope as she was keeping the date of the original time I started filling everything out.If there is anyone out there with any advice for this situation, I would GREATLY appreciate it!Thank you so much!Kim