Q.  In 2005 I bought my condo in South County for $305,000; it is currently worth $170,000.  I have a 1^st

^{and 2nd interest-only loan both at 7%, both adjustable, and with the second coming in as high as 11%.   I have kept up with my loans but I can’t get any help refinancing.   I tried to refinance in 2006 but the banks told me to wait because time were tough.  At this point I can’t afford my mortgages since they come in at roughly $2,000 per month but after the second adjustments I will be paying close to $3,000 a month and that would be impossible.  My condo is a one-bedroom and the market watchers say it could be up to ten years for it to fully rebound. Should I short-sale or attempt to wait it out? I’ve managed to keep everything in check for this long I do not want to ruin my credit just to get some help.} 

A.  You are a prime candidate for a mortgage modification.  You have maintained a good credit score, are willing to stay in your home and can afford to make payments at your current market rate.  The problem you may run into is that your loans are substantially higher in rate than the current market and can go even higher making them toxic.  Also you lender may not own your loan, they may just service it.  Hopefully they are becoming more willing to entertain modifications for people like you who are prime candidates.