I am really discouraged at this point. What do I do? The house is very small, and with our growing family know it's not big enough. 4 people in a 2 bedroom, 1 bath house. Its not worth the $110K. I am truly scared to loose our home for fear that I will never be able to buy another one, and that my credit is royally messed up for the next 10years. I really don't know how to proceed. I feel like I failed. My husband thinks we should wait, save our money and deed in lieu of foreclosure; but after working at a bank know that any which way we will have to pay. And the worst thing is that if we do foreclose and move I'll have to find homes for my 3cats and dog; since I know most don't look kindly on pets. But this is where I stand for now...

The most recent episode in this nightmare occurred in December, 2009, when I called to make our regular mortgage payment. HLS informed me that instead of the $2365 monthly payment, the new payment amount was $4,200, because HLS had established an escrow account without my or my bankruptcy attorney’s knowledge. I was threatened with sale of my home if I did not comply with this new payment. Based on our research and our newly-found understanding of our rights and the law, we believe HLS initially attempted to coerce us into taking out a larger loan than we needed; they continued this pattern in 2006, when the loan was restructured. HLS did not disclose all the elements of their transaction before it was finished, and the acts of their representatives included persistently attempting to and sometimes succeeding in persuading us to borrow more money than we needed.

They denied me a permanent mod citing "insufficient income" based on info from my "credit report." They also wrote that I did not qualify for an "in-house" modification. I could only determine that they were making assumptions based on a lack of documentation. I had not made the requested (and extra and outside of my trial payment agreement) Dec. 1 payment, because I wanted to go over the figures with my counselor at NACA. It takes about two weeks for an appointment to happen...if they call at all. I called Chase to tell them that they denied me without having my updated income docs. But my lender refused to discuss my account with me at all "because you're with NACA." Remember that NACA did not rep me at the time of the application and that Chase never sent me anything asking for more documents. They sent it to NACA.

“Hey Mom, why don’t we buy a house?” Those were the words spoken by my then 24 year old son as I faced the imminent sale of the rental I had been living in for 16 years. I was at first, of course hesitant, but then when I realized he also needed the tax break, we went for it.

In late 2005 we worked with Long Beach Mortgage (through Washington Mutual) to apply together for a loan. We were approved for $350,000. After weeks of looking, we found a home for less than $300,000. We thought we were being frugal.

After calling for the past two weeks to find someone at the bank who knows what "failed gross eligibility" means and spending hours on the phone I am now being told they are going to review my package again since everyone I have talked to cannot see why we were denied. Back at square one 8 months later all the while getting no help and slowly racking up credit card bills the whole time just trying to stay afloat and not wanting to walk away.