I bought a house in December 2007, Ive been on-time with my payments since ive had the home, but my hours about 6+ months ago were cut a great amount, and to make my mortgage payments i had to exhaust my savings account, im not at the point where i have no more money to pull from my savings to help make payments, and dont make enough a month to pay all my bills. I called the bank to see what they could do and they said because i refinanced in May 2009 i do not qualify for the governments making home affordable program and there is nothing i can do, and that im currently up to date on my mortgage payment. So my question is, what can i do about my situation?
Sell the house and move.
Unless I read your question wrong you bought a house and made a promise to pay X amount each month. You can’t afford that amount anymore, you’ve spent your savings making these payments and you are not eligible for any mortgage modification program.
Yep, I’d have to go back to sell the house and move. You will simply have to adjust your living accommodations so they are affordable on your current income. You can either do that by reducing any other debts you might have or lower your living expenses by getting out.