DEAR BERNICE: I had an interest-only jumbo loan fixed at 6.125 percent for five years. It was scheduled to readjust in 2011. I lost my job about five years ago when the company I worked for went bankrupt.
Due to my age and the nature of my job, it's highly improbable that I will be reemployed, so I started my own business. My business is growing but not yet profitable. I've been using our savings and my 401(k) to offset living and business expenses.
I would like to stay in my home but can no longer make the payments, so I applied for a loan modification directly with my lender. The lender stalled for six months and finally, after calling them repeatedly, I was told that my application was denied. The reason, I was told, is that I have too much equity in my home. more...
