John Kern's experience with the president's loan modification program did not go well. Not only was he denied a permanent modification, his credit score fell by about 200 points.
Kern wouldn't enter another modification program, even if his servicer, Wells Fargo, offered him one.
"It was a horrendous experience," said Kern, who applied for help after he and his wife saw their incomes drop. "I'm afraid of what they would do if we tried it again."
Instead, the married father of two young sons borrowed money from family and is wracking up debt on his credit cards in an attempt to keep up with his $1,970 monthly mortgage payment.
Kern's only way out may be to refinance his home, which could lower his payments by about $250 a month. A Wells Fargo representative told him in late January that he was being considered for the president's refinancing program, which allows those with little or no equity in their homes to take advantage of today's lower rates.
"We're waiting for the verdict," he said.
A Wells Fargo spokesman said the servicer won't know whether Kern qualifies for a refinance until he applies.
More galleries