Good evening, I am a member of Pentagon Federal Credit Union ( PFCU ). I 've been paying my mortgage for the last 8 years at a rate of 6.125 % fixed. I 've been trying to refinance with PFCU since XX/XX/XXXX and my application is rejected every time due to the loss of my home value. I do n't have a XXXX or XXXX XXXX loan so I do n't qualify for other programs. Recently, in XX/XX/XXXX I changed jobs and my income was significantly reduced. In XX/XX/XXXX, I missed XXXX payments ( I pay every two weeks ) for the XXXX time. So now I do n't qualify for the new HARP program. I submitted a hardship application to PFCU ( XXXX in two years ) with all the paperwork required, including my retirement ( TSP and XXXX ) statements, income, expenses, etc. I requested a loan modification to reduce the biweekly payments and/or interest since I am overextended with my bills. The application was rejected again. What really upset me was that their argument is that I should take money out of my retirement account and take the 10 % IRS penalty to pay my mortgage. I was not evaluated based on other eligibility requirements. That may solve one month or maybe two but what about after that? My income is still too low. In a written letter, PFCU says that my best option may be to find more affordable housing. As an alternative to foreclosure, I may be able to sell my home in pre-foreclosure sale or short sale. PFCU also suggested deeding my home to PFCU as another option. I owe a little over {$110000.00}. My home is worth less that {$70000.00} due to the economy and numerous foreclosures in my neighborhood. I live alone and depend on myself only to make a living and pay bills. I feel like my back is against the wall and I 'm being set up for failure not only in the present but in the future. This bank does n't want to work with me. The " Hardship Application '' process is a hoax. It was a waste of my time and they only wanted to know where I could find money and are not trying to lower the interest rate of my loan. 
