I’ve lost approximately 55% on my house (along with a huge amount of other people across the nation). For easy numbers, lets use 50% that I’ve lost. To break even, I now need to gain 100% on it’s current value. Using the "Rule of 72", assuming I gain 10% per year, it will take 7.2 years to break even. At the time of economic boom, I believe the average gain was 10% and that only lasted 6 years before the economic downturn. Under normal market condition, a gain of 3-4% per year, it will take me 24 years to BREAK EVEN on my house. I don’t qualify for a home modification because I’m not backed by Fannie or Freddie. I don’t qualify for refinance because my income is greater than 31% of my monthly loan payment (as long as I can keep my job). I don’t qualify for a "short refinance" because my loan to value is greater than 125%. Everything is pointing to 3 options…1) Keep making payment on a house that I will likely never have equity in. 2) Short sell. 3) Foreclose. There has to be a better option. I am current on my payment…which is probably why I can’t get anywhere with my banks. Does anyone out there know of an option I may not have explored already or am I just plain out of luck?
Jill – You’re point number 3 identifies EXACTLY my moral delima. I signed a piece of paper that said I’d pay my loan. However, if I were to refinance my house to current value, that would cut my monthly payment in half! That’s a lot of money.

Arbor Mortgage — do you have a source? I have a first and second. I was told both need to be with the same bank. My first bank sold both loans to two different companies. In addition, they said there are absolutely no programs available for a loan to value of greater than 125%. Basically they will only write off 25%. Do you have more information?
Arbor Mortgage — ignore my question "do you have a source"! I just realized Arbor Mortgage IS your source. I do still need more information though if you have it.

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