Your best bet is the new rescue package. Just get the payment above 30% of your income.
BTW, you help cause this mess.
People in this situation are not candidates to take advantage of the bailout.
First, FHA maximum is too far below his 1 Million dollar loan. If he paid his loan to under the FHA limit, he would be less than than 90% LTV and would get no principal reduction unless prices slide another 30-40%.
Other aspects that make the bailout unattractive in this situation. The 1.5% annual FHA fee on top of the loan amounts to about 10K per year at the FHA maximum loan limit. How much principal reduction would you expect if you were paying 10K per year ?
No, the bailout is not for this case.
In fact, I wonder if this bailout is ever really in the borrowers long-term favor, considering the 1.5% and owing at least 50% of future appreciation to the FHA.
