Home loan modification denied...?

Josh;

I have to say it your friend advised you correctly as with your income that eventually you will not be able to make your house payment in the future. You can always appeal this is discsion and I would advise not to pay them a dime in the mean time. I was able to get a loan modification but with lots of Research and follow up the process took a year.

There is a non-profit site called loansafe.org I used and swear by it and dig around there is a section for Chase in the Forum that has contact number for Chase upper management.

Only about 5% of loan modifications are accepted and many banks are moving towards pushing people do short sales and making that process easier. (source BofA)

Since you can't pay, the answer is to try and get out without any debt, or with minimal debt. This is why people choose short sales vs waiting and getting foreclosed on.

With a short sale, the realtor can help negotiate with the bank that you get out without having to pay any of the loss (the difference between the loan and the amount you receive). The bank also pays for the real estate agent's commission and the cosing costs.

With foreclosure, the bank may still be able to come after you for any lose they have. (each state has different rules on this).

Each individuals situation is different so take to a realtor who knows about short sales AND talk to a accountant about tax ramification on your actions.

The goal should change from keeping your house to minimizing your liability.

Good luck.

Always Protect your Investment 'in this case your deposit"

Friends are usually not the best financial advisers to use.

Look at the mess, are you any better off, using this (don't pay ) approach ?

try to change the Bank who hold's the mortgage. The try to make a bit more of

your payments towards the Principal. that's where progress begins.

What they are saying is that even if they lower the interest you still will not be able to afford it, they can not lower it enough for you. Since you have not paid you have 8400 saved up, that should be enough to move.