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What your bank is saying is your house is worth less than what you owe. Are you late on your mortgage? Have you proven hardship? Did you submit your monthly expenses and copy of monthly income. Banks are trying to work with home owners but notify your lender immediately you're unable to pay your mortgage.
If you live in Southern California, I could assist with your loan modification at zero cost. Check out my website for the process.www.patamadirealtor.com
I'm not a loan officer, but if what I read online is any indicator, the value of your home vs. what is owed on it is NOT a factor in a government-sponsored modification. It is wholly determined by your income vs. expenses.You can read about the modification process at www.makinghomeaffordable.gov ; Good luck! I've also heard they will do anything possible to keep from doing them!
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For Sale: $149,000
For Sale: $595,000
For Sale: $419,900