My husband was diagnosed with multiple Myeloma(cancer)in January of this year. He is end stage and will never be able to work again. He is responding to treatment and we are waiting for his ssdi to kick in but we are now facing losing our home. We have had a mortgage with American General for a little over 2 years. We never missed or were late on a payment except once which was the banks fault. Because of the loss of my husbands income we have to live on my ssdi which is only $766 a month. Our payment was $477 a month and we had to stop making it in order to pay all of our other bills.

American General offered to do a "loan modification" for us. They would lower our interest from 12.85% to 9% for six months and would take payments of $575 a month so we could catch up. How they figured I could make a payment higher on a reduced income is beyond me.

Today we received a notice that they are going to do a trustees sale on it August 5th of this year.

Our major problems are these: My credit score was 620 but it has gone down drastically because of the Mortgage reports. Our home is partly trailer even though it is listed as a single family home by the county as it is fully encumbered. We live in AZ and because of a sewer lien on the property the city has already had a sheriff's sale for the $3400 we were unable to pay. The lien was paid in installments but we missed one so the city grabbed our property. Now this month taxes are due and we cannot pay them. SSDI is deciding if my husband is disabled, (multiple mylenoma is listed as an "automatic" but they are telling us that they have 120 working days to decide and are using Feb 23 as they day they finally had all his paperwork).

We do not know what to do, we don't want to lose our home but even if SSDI gets his checks started in July we still will not be able to pay off everything to get it all caught up. I know our best bet would be to get a new loan but without a good credit score that is impossible. Is there help for us out there somewhere?

We owe $37,000 on our home plus the $3400 to the city and $250 in taxes. The home is valued by the county at $110,000 but actually is worth about $60,000 at current market values.