Countrywide Home Loans "Modification in process" but we have an auction date Nationwide

We owe $423,000 on our primary home which is appraised for $195,000. We owe $265,000 on our rental which is appraised for $109,000. We received a notice in Dec 2007 stating our primary residence payment would go up from $2460 to $2730. I contacted Countrywide and asked for a modification for our primary and a short sale for our rental. I was told I had to be 2 months behind in payments and qualify to get the modification.

I didnt stop making payments until I faxed all verifications and was told we were approved for the modification. They said we would be hearing from them in 10 weeks. We didnt hear anything and so we called to make a payment. We were told not to make a payment because it would "mess up the modification".

To make a very long story short - this has been going on since then. One employee asked why we cant pay the $24,000.00 to make it current since we "should've been saving all the payments". My husband explained that we had a flood (our insurance didnt cover all damage). We replaced the carpet, paint and floor boards since they were ruined. We paid off some bills and we finished our landscaping. It really isnt any of their business!!!

We are also paying for 10 acres that my elderly in-laws live on. We tried to get a loan for a manufactured home to put on the property since we dont trust Countrywide. Our credit scores went from the high 700s to 579. We were denied. Just 3 weeks ago - they told my husband that they are almost done with the modification.

Yesterday, a notice was put on my door stating the auction date is 9/12/08. It is not fair that they (1) told us to stop paying, (2) refused our payments, (3) "approved" the modification....just for us to lose everything. Someone else will come in by purchasing it for less than half. WE NEED HELP!!!!

Smothers
Atwater, California
U.S.A.