Litton Loan Servicing They say we don't make enough money to pay less!!! Houston Texas

I bought a new house 8/2005. The original loan company told me the monthly loan amount of $925, between the 1st and 2nd mortgage. could be refinanced within a year. (Because I told them that was too much) My mortgage was sold 4 times. 3 1/2 years later, we have been unable to refinance, sell or rent our house. Partly because of the drop in the housing market.

Our payment has not only gone down, it has gone up, because taxes and insurance werent included in the original amount, even though they said they were. We're now paying Litton alone $831.00 a month, and the other company $225.00.

We have been paying on time every month, but due to medical issues (my fiance had a liver transplant, and I missed alot of work caring for him) we have been struggling. We have contacted Litton 3 times in hopes of modifying our loan so it reflects the drop in the value of our home and also the drop in interest rates to make it more affordable for us. They have turned us down all three times, saying we don't have enough income for a lower payment. One rep told me if they lowered their payment they'd be paying our other bills for us.

How can we possibly be paying on time the full amount every month, and not have enough income for a lower payment? Does that make any sense to anyone but Litton?
This month, for the 1st time, we didnt pay them the full amount, we paid a little less than half, which was all we could afford.

We've also contacted our state senators and HUD in an effort to force Litton to lower our payments.
We don't want to lose our house, or wreck my good credit, but we'd rather do that than continue to pay $1100 a month for a 810 sq ft house in a bad neighborhood.

Sher
St Augustine, Florida
U.S.A.