In XX/XX/XXXXwe purchased our owner-occupied home in XXXX   County California using 80/20 financing. Both loans were funded by XXXX XXXX.

XXXX XXXX XXXX serviced the 1st and Franklin Credit Management Corporation serviced the 2nd. It is Franklin Credit Management Corporation who we are having a problem with. Dollar amount is {$220000.00} as of XX/XX/XXXX.

In XX/XX/XXXX through a 3rd party working on our behalf contacted both XXXX XXXX XXXX servicer of 1st and Franklin Credit Management Corporation servicer for our 2nd asking to modify our loans. Our 3rd party representative was able to successfully negotiate a loan modification with XXXX XXXX XXXX. XXXX XXXX XXXX agreed to lower the interest rate beginningXX/XX/XXXX and ending on XX/XX/XXXX. Franklin Credit Management Corporation would not or could not modify the 2nd mortgage. With the financial crisis and Franklin Credit Management Corporation 's continued unwillingness to modify the loan we were forced to prioritize and chose to pay our payment on our 1st mortgage and no payments on our 2nd mortgage.

XX/XX/XXXX the mortgage payment on the 1st increased substantially. ByXX/XX/XXXX with the increase in payment continued decline in our business we were unable to keep up with the larger payments. XXXX servicer of our 1st mortgage filed a NOD on our home. Home was listed for a short sale in XX/XX/XXXX an offer was accepted inXX/XX/XXXX.

Short Sale was canceled XX/XX/XXXX and a loan modification was requested. All information requested was provided by us to XXXX including the information on the 2nd mortgage.

On XX/XX/XXXX our HAMP federal loan modification was finalized. The principal balance was increased. The interest rate was lowered and fixed. Term extended 2 months. We were given a principal balance reduction. Our modification agreement included a balloon payment of due at the end of the loan. It was our understanding from XXXX  that the 2nd mortgage was taken care of with the HAMP federal loan modification.

XX/XX/XXXX a Notice of Default and Election to Sell Under Deed of Trust was filed on behalf of Franklin Credit Management Corporation. THERE HAD BEEN ABSOLUTELY NO CONTACT with Franklin Credit Management Corporation or any other company representing them prior to this filing SINCE XX/XX/XXXX. ALL CONTACT WITH THEM STOPPED AFTER OUR HAMP LOAN MODIFICATION. THIS ACCOUNT ALSO WAS NOT REPORTED TO ANY OF THE 3 CREDIT BUREAUS SO WE HAD NO IDEA WE STILL OWED ANY MONIES ON THE 2ND!! IF WE HAD KNOW WE WOULD HAVE ADDRESSED IT. When asked why there has been no phone calls, statements, emails or personal visits their reasoning was we sent them a letter in XX/XX/XXXX telling them not to contact us anymore, but yet they continued to send statements until XX/XX/XXXX. When asked why they stopped contact in XX/XX/XXXX they said the account was in collections, but there was no collection activity by Franklin Credit Management Corporation or an outside company on their behalf. They also claim to have sent us a Notice of Default and Intent to Accelerate dated XX/XX/XXXX sent via first class mail which we NEVER RECEIVED!! even thought their " NOTE '' states all notices were to be sent certified mail per section 7 and section 12 of the Deed of Trust and Request for Notice of Default. We also never received proper notification per the FTC rules when in XX/XX/XXXX Franklin Credit Management purchased this loan themselves.

We contacted them numerous time between XX/XX/XXXX to XX/XX/XXXX trying to negotiate a settlement or a modification. Franklin Credit Management Corporation employees were rude, disrespectful and downright unreasonable. We were forced to file Chapter XXXX BK in XX/XX/XXXXto stop them from foreclosing on our home. Even hiring an attorney Franklin Credit Management Corporation has remained completely unreasonable and all attempts for a modification or settlement have failed to date.

In summary Franklin Credit Management Corporation is in my opinion a PREDATORY MORTGAGE LENDER AND SERVICER who did not contact us either by phone, mail or a personal visit before filing a Notice of Default. They have racked up large amounts of penalties and interest and have been unreasonable refusing to work with us to resolve this matter. I am sure that the AG 's from all the states that bought suit against the Banks and help create programs that helped us such as the HAMP Loan Modification would not want a junior lienholder such as Franklin Credit to come in after remaining silent for several years and foreclose and take our home after we have worked so hard to keep it. We were one of the less than 5 % whose 1st mortgage balance was reduced and if it was not for that reduction and our outstanding performance to meet all requirements to obtain that principal balance reduction Franklin Credit management Corporation would have no position today.

Our desired resolution is for Franklin Credit Management Corporation to modify our loan removing all penalties and interest that has accrued unbeknownst to us reducing the balance back to {$110000.00} which was the principal balance at the time of the default. Lower the interest rate to 3.75 % for 30 years lowering the payment to {$550.00}.

We desperately need your help with this PREDATORY company I truly believe operates outside of the regulatory guidelines as it suits its own purpose before they succeed in foreclosing on our home now that the BK has been dismissed.

Respectfully, XXXX and XXXX XXXX