Let me try to help you,
There are rules that regulate mortgage modifications, that are different from state to state.
There was a law enacted on July 8, 2008, that requires Lenders of residential loans in the State of California to accept loan modifications in most foreclosure situations.
California Civil Code 2923.6 went into effect on July, 2008, and applies to all residential loans made from January 1, 2003, to December 31, 2007, inclusive, that are secured by residential real property and are for owner-occupied residences.
From your statement it appears you are trying to do your own modification. This is the expected run around you get trying to communicate with your lender. Many people I speak to say "My mortgage company says they won't modify my loan". If you can prove a hardship, by law they have to.
Based on the law above (which lenders know you nothing about), if you can prove you have a hardship that will result in a foreclosure. You can actually sue your mortgage company. The end result will be a modification of your mortgage.
What are you options?
Every loan modification is different. I do not know the specifics of your situation. One hardship your could pursue - you are in an adjustable high interest rate. The reduction of your neighborhood value, has erased your equity and made it impossible to refinance into a lower fixed interest rate.
If you have questions PM me
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