We purchased our primary home in 2007, with a hefty down payment. Right after the purchase of our primary residence, the bottom fell out of the market, and we were unable to sell or refinance. We have been working hard to make our payments for the last eight ( 8 ) years to keep our home in spite of our many troubles and have kept our credit score in the XXXX to XXXX range. 
Our loan is a " Pick-a-Payment '' loan which was previously under World Savings Bank, and was bought out by Wachovia just prior to our loan. We have been told that these loans are the reason why Wachovia Bank failed and was bought out by Wells Fargo. 
This loan allows us to make XXXX ( XXXX ) different payment amounts ( less than interest, interest only, standard 30 year P & I payment, or 15 year P & I payment ). We have been paying less than interest because that is all that we have been able to afford due to our other expenses. There was a court case that provided relief for delinquent borrowers, but did nothing for us, unless we were to stop paying our mortgage. 
Since we purchased our primary home, we have struggled to make the negative amortization payments, due to the many unexpected expenses and job losses that we have had. Our loan negative amortization payments have increased to almost double what they were originally due to the added mortgage interest to the loan amount. 
Our loan will go to standard full P & I payments in less than two ( 2 ) years, and we will surely fall into foreclosure. We are trying to be proactive, because we see the lights coming towards us in the tunnel, and foresee the train wreck that is about to occur. We want to preserve our good credit rating, as well as our most important assets, our home. 
We were denied a loan modification on our primary home under HAMP. We appealed due to how the monthly housing expense was calculated. We believe that Wells Fargo has incorrectly calculated our " monthly housing expense '' as {$3600.00}, and that it should be calculated as follows : Principle and interest payment on our first lien mortgage {$3900.00} Property taxes {$490.00} Hazard insurance premiums {$160.00} Escrow shortage payment {$1300.00} Homeowners Association Fee $ XXXX Monthly Housing Expense {$5900.00} According to the Wells Fargo letter, to qualify for a Tier 1 loan modification, we are required to have a monthly housing expense of equal to or more than 31 % of our monthly gross income of {$17000.00} which comes to {$5400.00} ( {$17000.00} XXXX {$5400.00} ). Our monthly housing expense is {$5900.00}. Thus, we do qualify under HAMP Tier 1, as we have a monthly housing expense of more than 31 % of our monthly gross income. Using the calculated monthly housing expense above, we have a monthly housing expense of 33.5 % ( $ XXXX {$17000.00} = 33.5 % ) of our monthly gross income. 
