Suzi - this is all too common in todays' market.  While we all hear the media advise folks to "call your lender" "work with your lender", etc. it is often times not the fault of the borrower that the loan goes into default.  Many times it's the lender that won't even attempt to work things out with the borrower.  They demand that the end of the road be on the horizon and even then they are reluctant to consider alternatives to foreclosure.  IMO they are making their own bed...

Is their financial world in such disarray that they cannot qualify for a refinance? Is it because they have already been late on their mortgage payments? How much equity do they have in their home? I'm in the mortgage businesss and so I'm wondering just what their situation is. I imagine they already have been late on their mortgage, If that is the case then their chances of surviving this are dim.

This certainly speaks to the fact that Congress should step in and freeze all adjustable loans until the mortgage meltdown subsides. Especially for those borrowers who were doing fine until the adjustments set in.

Lenders won't work with a borrower unless they're in default. I called my lender when I saw this on the horizon and was told "sorry, can't help you unless you're in default". Then you're at their mercy and owe them back pmts. plus penalties. I say give them back their black hole. My credit score is over 700 and I can't refi and the lender won't work with me.

I am hoping for a positive outcome even though the chances are slim.   Thanks Carol

None, Nada, Zip....No equity and a declining value.  They did manage to lock in a rate on their personal residence and are waiting until the prepayment penalty is gone in one month to refi their personal residence.  But yes there have been some lates.  They were in neg ams but it wasn't live changing until it adjusted.  wow....   Thanks allen, I agree something must be done to protect consumers. 

I'm sorry joseph, but after being in this mess with my friend, I totally understand.  Mortgage companys must be seeing dollar signs in their eyes, because they have totally missed the mark on this.  I would think that a smart company could and would find a solution to save each and every borrower, why, because can you imagine the good PR, that company would receive.  Now our local media is full of news most of it bad.  But if the "Good Samatian Bank" would step up, the positive consumer impression made would be unbelieveable. Thanks again Joseph and good luck working it out.

Im in default right now. I have an 80/20. I fell late on my payments due to 3 of my companies filing bk. All 3 employers go under in the same year??! So I called my lender, and instead of paying my mortg. payment in full each month, they wanted double the payment. Thats crazy huh? If I couldnt pay the original amount then how on earth could I afford double? After months of stress (and still going) they refuse to work with me unless I short sale my home and sign a legal agreement that says I will still owe the full amount on my house. THATS CRAZY!! They want me to pay for a house that I could once afford but then couldnt due to the econmy and then they still want me to pay them for a house I dont own anymore!!! Somebody please stop these huge companies!!   BTW, these owners / founders of these mortgage companies still have billions of dollars and dont get away with murder with Wallstreet!

I'm sorry.  I am hearing this more today and there are no easy answers to make it all go away.  It won't.  Don't let anyone tell you it will.  I see only a couple of choices.  Short sale, a deed in lieu of foreclosure or foreclosure.  Depending on your circumstances, some choices are better than others.  Please contact a professional realtor to explore your options.  These carry very big prices to pay.  Your lender during these times is not your firend.    

We are reaping what we sowed. If you remember California rarely if ever uses a mortgage. Under the old system in effect under the Wellankamp vs. Bank of America People in default could sell their homes cash to loan to a new buyer or investor. They didn't get rich but their loans were brought current and they got a few thousand to help them move. In some cases the buyer would rent the property back to them. This is better than what we have now(losing everything). I was against this law change at the time and still am. You can thank a couple of senators ( bought and paid for) and C.A.R. for not fighting it back in the early 80's. And of course you can thank the lenders, investors and homebuyers themselves in most cases for arranging or taking loans that were not solid. Many of these people had no business buying a home and the lenders had no business making such risky loans. If you want to clear up the problem in California go back to operating under Wellankamp. Of course you will need to do something about the federally chartered lenders doing business in California. There was no need to change this law in California but in those states that do use a mortgage it is needed to protect the lenders against long drawn out foreclosures. Where was all of the outrage then?