Wishire Credit Corp, Va Resident

[Joel Fraser]

I have an interest only ARM that adjusted in May. This loan was supposed to only be a quick fix until my two years were up and my husband could get his credit score on track. Unfortunately, his credit has been too bad to put him on the mortgage, so everything is in my name. I have a second mortgage thru the same company. This is one of those twisted mortgages where they were trying to help me not pay PMI, so I have 80% on my first and the other 20% on my second. So, of course, two years later the market is terrible and I owe way more than my house is worth. Between the two mortgages we pay $3,100 per month and it's killing us. We WERE paying $2,800 a month, but like I said, it adjusted in May and went up $300. So, I contacted roughly five different banks to see if I could consolidate the two mortgages and get into a 30-year fixed. Of course, no one will touch me with a 10-foot pole because we owe more than it's worth. I had one loan officer tell me that I would be better off working with my current mortgage company on a loan modification. So, I called Wilshire and they said to fill out the paperwork and send it in with a hardship letter. I filled it all out and sent it in, only to wait for 2 mos before they even got around to working on it. Finally, I called and found out I was denied. They said that they WANTED to approve me for 6.39% interest rate, which would bring my mortgage down $700 a month, however I can't afford it. (which I was thinking, hence the hardship?!?!?) So, the guy on the phone asked if I had any other household income, to which I responded that my husband's income I didn't include because I didn't think I could, considering he's not on the mortgage. The guy told me to send in a amened financial statement, including my husband's income because it is considered household income, to which I did. Then, low and behold, two weeks later I called and they said I was denied because........are you ready............"you can afford it!" I wanted to scream! So, anyway, now I'm stuck in a situation where I'm paying WAY too much on my mortgage and there is nothing I can do to get it fixed. I have considered cashing out my 401K and putting it down on the second mortgage, but that STILL wouldn't get me to where I need to be to consolidate the two and have a 30-year fixed. I can borrow against it for $50,000 at 3.5% for 5 years. Doing the math, if I were to have a 30-year fixed on $418,000 (which is what I owe totally combined), at 6.39%, my mortgage would only be $2,600 (roughly) per month. This whole situation makes me sick to my stomach....:( Any ideas?