I need some advice. I currently have a negative am loan and a home equity line of credit. I am paying the minimum payment on both cause that's all I can afford so my first loan is going up cause it's a negative am. I have heard about the agencies that help you lower your interest rate and even sometimes get rid of the second loan by doing a modification. I tried this once myself with my bank but they did not approve it. Has someone done this or know if this really works by working with these people? I know that either way in a few years I will probably loose my home once it reaches the cap amount and the rate adjusts because my payments will go up:confused: so I am tying to do something now before that happens. PLEASE ADVISE!

There are a lot of plans currently available for people in your situation. Try your bank again.

Consult an agent in your area who specializes in "short sales". I am not telling you to sell, but I am saying that they probably deal with more people in your SAME situation on a daily basis. The banks seem to be running things backward if you ask me. See, often times they won't talk about loan modification until someone is behind on payments and is showing that they truly cannot afford the home. The bank will have you pay on your original terms of your loan until you fall behind on payments and the physicall see that you can no longer afford the home. Let's face it, if you are making payments what is their incentive to modify your loan? Kind of backward huh! That is what I have noticed in my experience with people trying for loan modification. From my personal experience, I have not seen any modification made for a home owner who is current on payments. Just my observation and I am sure that there are plenty of people who have. Just noting my personal experience. Just make sure you keep in contact with your bank and stay up on everything to the best of your ability. In any relationship, business or personal there is no doubt that communication is key! Keep the lines of communication open with the bank.