History- credit scores were in top 700's and CW showed us a pay option product at last minute on new construction home, and only showed us the monthly payment breakdown of the min amount vs. a 7 yr ARM product that we had been looking at, telling us we could us the extra cash for the new home expenses we would have and while we were waiting to close on our other home, and refinance after rates got better and we sold our other home. When we called at the end of 2007 to do so " oh, sorry, those products are no longer available and your house does not have the value it would have 6 months ago... CW used their in house appraiser, Landsafe Credit, to do an appraisal on new home construction that was not even completed yet. Lived out of state at the time of closing, and docs showed up at last minute with a notary, with no advance copies to review. We trusted that our CW broker was trustworthy ( our mistake ) Turns out our home was never worth what they appraised it at ... Have been trying to modify with B of A since 2008, after acquisition of CW. We have only been able to ever pay the min amount on the loan, so neg amortization has added an additional $ 80k to the balance in the past 4 years, but B of A does not consider that "past due". The CW settlement with the AG's gave us some hope, with the type of product that we have, but then found out that it was being self enforced and policed by CW! The WA State AG's office will not get involved - what a farce of a settlement! After 16 mos of waiting for a HAMP modification, turns out the B of A was just running out the clock until our loan balance surpassed $ 729k and then denied in Jan 2011. Escalated to the presidents office, and got a "specific contact" person, who had me submit all my financials again "to see what he could do" and came back and said that the "investor' would not allow any modification to this loan, so the HAMP would have been denied anyway. That was Feb 2011. He assured me that my loan terms would not change until 2017, so keep on paying at least the minimum due, and we could stay in the home for many years, even though the neg amortization would be adding at least $ 20k every year to the balance. Great support help there in the Prez's office...Lost my job in March 2011 and my dad passed in April, so have been preoccupied with that and finding a new job, putting this fight on the back burner temp, until last month when I got my monthly statement and B of A added an escrow account to my loan that upped my payments by almost $ 1000 per month! After they knew that we were trying to modify for 2 years.... Tried to get the escrow removed, and the prez's office final answer last week was, sorry, since you attempted to modify, and we had to create an escrow acct while you went through the process and paid your taxes last year, it left you with a neg escrow - and "per your investor's requirements" , we cannot remove the escrow from your account " - even though B of A did so last year, when they tried to do the same thing and add a perm escrow payment to my monthly payment. That got taken off, with only the amount that they paid out amortized over 60 months. I pointed this out, as well as the bank cannot change the terms of my original loan, and they told me they could, since I tried for a modifcation. Seems like once you try to modify, you are put in a category of high risk, so they try to force you out by knowing that you aren't going to be able to pay the higher amount? This new monthly is $300 more a month than I was paying for all taxes, insurance, mortage payments, while they try to build a surplus in this escrow account. Can anyone tell me what my options might be at this point? Being unemployed, with my severance pay just about exhausted and cc bills that I am not paying, I am considering either filing for BK, or do I stop paying my Bof A loans. Have both a 1st and 2nd with B of A , which were the original loans when we closed on our home. Constructed the home so that my mom could move in and have her own space... so she will be devastated if we lose it. But being at least $200k underwater, what I would need is a principal forgiveness as well, but I haven't been able to figure out how to do that ? Do I try again for a mod and join the HAMPster game, even though our balance on the first is over $ 729K? Am current on both the 1st and 2nd...Any advice would be much appreciated!