Thanks for the information.
California has a new "foreclosure moratorium law." I have provided a link to an article explaining the law below:
Also, you may qualify for a loan modification or Mortgage Rate Reduction Program created in conjunction with the Government Economic Stimulus Act of 2008., especially if you have negative equity in your home. You may be able to get out of the "interest only" loan and into a low fixed rate loan. FIXED RATE loans are the best. Below is a great article to help guide you.
You need to get on the phone with your lender ASAP if you want to keep your home. You must keep insisting to speak to a supervisor. The initial people who answer the phone may know nothing, but may just try to "get rid of you" and your problem.
You need to speak to someone who is knowledgable about your specific case and someone who has authority to make decisions. If the person on the other end of the phone realizes that you mean business and that you know what you are talking about, you will receive better service. DO NOT be demanding or mean, but be firm. Also, you should ask to set up an appointment with your lender to discuss your options. Face to face contact is always better than over the phone.
You may also want to speak to an attorney who specializes in foreclosure/real estate law to assist you. You may want to do that as soon as possible. You can contact your local bar association for a referral. It mayh give you 2 or 3 names. You can contact the attorney(s) for a telephone consultation, or ask to set up an appointment to discuss the specific facts of your case. Sometimes, these consultations are free. A free consultation is worth its weight in gold.
Legal Disclaimer: The answer provided herein is for informational purposes only and should not be considered legal advice. No claim is made that I am licensed to practice law in the state or jurisdiction where this information is being provided and you should always seek legal counsel admitted to practice in your local jurisdiction for representation and advice on any legal matter.