Last edited Wed Feb 1, 2017, 12:45 PM - Edit history (2)
I've read articles where skipping payments is not good advice as far as increasing your chances of getting a loan modification. Check this out fully and carefully before ruining your credit rating. Realize also that a fucked up credit rating will result in higher insurance rates, higher interest rates on loans / credit balances you already have, possibly result in frozen credit lines or even payback demands, makes the job search harder, harder to rent, etc. And your loan modification will be temporary. So please look at the whole picture.
https://www.google.com/search?sourceid=chrome-psyapi2&ion=1&espv=2&ie=UTF-8&q=mortgage%20modification%20stop%20making%20payments&oq=mortgage%20modification%20stop%20making%20payments&aqs=chrome..69i57.7336j0j3
http://www.nolo.com/legal-encyclopedia/should-i-stop-paying-mortgage-i-qualify-loan-modification.html
And there is such a thing as being too poor -- in mortgage modifications they are looking for a Goldilocks spot -- not too rich and not too poor, income wise (and debt level). They look at a debt payment to income ratio. If it's too low, then they figure you can afford it without help, despite your squawking. If it's too high, they figure that what help they can offer will not be enough and you'll go under anyway. They do a "net present value" analysis and risk analysis.
As for a home retention advisor, I don't know what that is. If it's a non-profit agency like Habitat for Humanity, that's perhaps good advice from people who have helped others work through the process (on the other hands, some are inexperienced and have their perceptions colored by ideology). If it's someone who advertises on AM radio and expects money before doing much of anything except the sales job, then run like hell for the hills. Check them out on the BBB and by a plain old Google search.
I take it your interest-only period is ending and you will have to start paying principal?