We applied for a hardship with Litton Loan Servicing. We never have been late, and our daughter passed away 6 months into our new home. The home is upside down in value, we paid next to 230,000 In January of 2007. I quit my jobs and my husband is the only one working right now. I work a 1099 and they wont take that as regular income, This hardship was for both of our loans, one we pay 435.00 a month and one 1227,00 a month. We needed to see if we could at least drop the interest rate on a loan modification. The second loan, they dropped to 8 % and said that was there lowest they could go, it was 11.6 before, we just got a letter in the mail for the 1st loan and they said that they couldnt lower it any lower then it alread is 7.6 but they fixed both loans (they were on a arm). My complain is that we paid 16,000 all inclusive for everything for the burial of our daughter, and I was unable to work, we are trying not to loose our home and have never been late. Its everything we can do to make our payments each month and yesterday we receive a letter that we had an escrow shortage and now to make up for it (county and fire taxes) our payment would be increased by almost 300. on the first loan???????? Our property isnt worth anything close to what we paid for it and now we owe more and they said that our interest rate would not ever be lowere????? We did this on our own trying not to loose our house, Freaked out in Laveen?? rssr@earthlink.net Renee