FHA Loans on Underwater House?

Any help in this matter would be greatly appreciated. I currently have 2 loans on my primary house in a Metro area in the East..My first loan is with Carrington Bank$ 568,000 with an interest payment of 5.75%, loan has numerous violations in original documents( such as 40 year loan not 30 year, etc) and we are... show more Any help in this matter would be greatly appreciated. I currently have 2 loans on my primary house in a Metro area in the East..My first loan is with Carrington Bank$ 568,000 with an interest payment of 5.75%, loan has numerous violations in original documents( such as 40 year loan not 30 year, etc) and we are presently in modification with them and my attorney. Proposed payment is being dropped to 5.25% and loan will be 30 years. Now second Loan is with Bank of America at 11.4 % and the payment is 1,400.00 with a balance of about $137,000. Have tried since second owner got sick( and can not pay ) to get a fair modification from the banks. Have been fighting for almost two years now. When your mortgage payment is more than 85 % of your income, it can be a mess to say the least.My questions are for those who can answer.1) With the new plan what are my chances of getting an FHA in a year, if both loans are modified? Bank of Americas answer to a loan mod was to raise my rate, last year(09). If I can what programs are available to my family and I? Is their a way that one or both of these bank may forgive a portion of the loan, so that I can qualify for a new loan with FHA. Neither bank has worked in any way with me at all. This is the 6th time I have tried modificiations. Since many people say we can deliver the world, and do nothing when it comes to it. Is it worth going to court for a forelcosure in NYS? I mean will this force the bank to work with me in a fair manner, not greedy manner? Short sale is not an option since house is underwater by over $100,000 and bank will not agree to that. In a foreclosure what can I expect to happen? Do not want to upset second owner who is sick, so will do this by myself. I am married(possibly not much longer) and wife works but is not on loan, since house was bought before we were married. So you can see the mess this has become for all involved. Any help you can offer in this matter will be greatly appreciated, thank you.
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