WABROKER

(September 11, 2009)

Because of a temporary financial hardship, my wife and I decided to apply for a loan modification from our lender, GMAC, to help stop foreclosure.

At first, we received a letter rejecting us from President Obama’s loan modification program due to insufficient income (although we had never missed a payment up until July when this process began).

Today GMAC called to inform us again that we had been turned down for President Obama’s loan modification program.

The terms of the loan modification would have reduced the principle on our loan by 30%, dropping our $400k mortgage below $300k. In addition, it would have dropped our interest rate from 6.125% to 3.125%.

Yet I was told that we do not qualify for loan modification.

I have been making my mortgage payments for the past 6 years, how could I not afford to pay the mortgage if it was cheaper?