My Story (part 6): The bank will help us…right?

We decided to apply for a Loan Modification knowing that it was unlikely we would get one…but we had to try. At this point banks were only dealing with people that were delinquent on their mortgage. We had been current up to this point but it was not an issue for us to stop making payments as our savings had run out and we were running a deficit each month. So we stopped paying and submitted our request to the bank. We needed the bank to lower our payments for the next 3-5 years or we had to walk away. This process could take months so now it was wait and see. In the meantime we would save every penny to rebuild our savings.

The bank responded to us in July. Denied. I was devastated. But I also knew that this was the best thing for us. We would now wait out the foreclosure period and then look for a rental. The house was foreclosed on in October and is now on the market for $334K… $300K less than what I paid in 2005.

“There are two ways of being happy: we must either diminish our wants or augment our means….”

~ Benjamin Franklin

My Story (part 7): Where are we now?

Or start from the beginning here.