Indy Mac Home Loan?

Hello pros, My parents purchased a home in 2004. Their monthly mortgage payments were $2400 per month, at the time were very affordable, my father was the bread maker. My parents divorced in 2005 and my mother was left with the house and mortgage payments. My mother has a low paying job, and had to refinanced... show more Hello pros, My parents purchased a home in 2004. Their monthly mortgage payments were $2400 per month, at the time were very affordable, my father was the bread maker.

My parents divorced in 2005 and my mother was left with the house and mortgage payments. My mother has a low paying job, and had to refinanced to lower her mortgage payments to $1,300. Throughout 2006 she refinanced again, because she had an ARM loan and jumped to close to $2,800. So her payments were $1,500 in a INTERESTS ONLY LOAN.

Until today 2008, she owes more than what the house is owed and valued at, by Sept 2009 she will need to pay approx. $3,800 per month, she works two jobs, and can barely afford her $1,800 mortgage. I've heard about the loss of Mitigation office & considering

She has never been late with her mortgage payments, and her credit score is close to 700, she has two loans out for this ONE home, currently under pre-penalty until Sept 09, no equity in the home. What can be done or be smart to do?
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