What can we do to get another loan modification?

There is no law that requires the lender give you a loan modification, let alone a third one as you are now asking for. The bottom line is that if you want to keep your home, you must continue to make your mortgage payments, property tax payments and maintain homeowners insurance.

When your house is upside down, you may be able to eliminate your junior (second) mortgage in a case under Chapter 13 of the Bankruptcy Code. Please note that Chapter 7 does NOT eliminate the lien that makes your house the collateral for the second loan; so, you must eliminate it in a chapter 13 (or 11) case or the holder of the loan will continue to have the power to foreclose years later (at a time when the balance of the second will have grown through the accumulation of unpaid interest).

There is nothing you can do but keep applying for loan modifications. If the bank gives notice of trustee's sale then you might consider filing a Chapter 13 case to stop the foreclosure and maybe apply again or contest the denial of the loan modification possibly. In the Chapter 13 you might be able to strip off the lien for the second mortgage so you will end up just owing the first and hopefully with better terms after getting a loan modification. You should consult with a bankruptcy attorney so that you are ready to file the bankruptcy case if necessary and prevent the bank from foreclosing. I believe that the banks take your loan modification application more seriously if you are in bankruptcy so if you have already tried and failed maybe doing it while in a bankruptcy case may improve your chances of getting it. You also need a professional to help yo with the loan modification. It is not just filling out an application. How it is filled out and documented is very important to getting approval, particularly in cases like yours where the income may appear not to be sufficient to qualify.

You may wish to consider filing for Chapter 13 bankruptcy, as that may allow to to "strip-off" the second loan. I strongly suggest using an attorney if you are considering filing for Chapter 13 bankruptcy, however.

Filing for bankruptcy may be an option. I would recommend consulting with an experienced bankruptcy attorney to discuss your situation in detail.

You might qualify to file a chapter 7 and walk away.

It is possible that you could file a Chapter 13 bankruptcy and strip (remove) the second mortgage. This requires a very experienced lawyer if you are eligible to do it.