I have a 6.75 arm expinring may 2011 - I have tried to refi but the condo building isn't qualofying for a refi . I have chcked into a modification but my income alone doesn't qualify- my brother is down as a co borrower but doesn't really have anything to do with the condo he lives in a different state aand we used his ratings to get my mortgage back in 2006. If i can't get a modification or refi and the new terms are impossible what reprecussions can my brother expect to his credit etc. if I have to let it foreclose.

As your bother is a co-borrower on the current mortgage, and if you do not pay the mortgage, your bother can expect the bank to contact him for payment and the late or non payment will be recorded on his credit report just as it is reported on yours.  This is very much Not good. 

Have you checked to see if Freddie or Fannie owns your current mortgage debt?  This is a program that is not a modificaiton - but a government Help for Homeowners program.  You can google does fannie - freddie won my mortgage.  If they do, you will qualify for a refinance on your current loan - however, your bother will also have to co-borrow on the loan again - as the new loan must have the same borrowers on the loan.  Right now these loans can be either a fixed rate loan or a 5/1 ARM.  The current rates on the 30 year fixed for these programs are about 4.50% with 0 points for a 60 day rate lock.  The easiest way to refinance this debt, if Fannie or Freddie owns your debt is to contact a local loan officer with the company who owns your current debt.

Do you know why your condo building does not qualify for a refinance? 

THE BUILDING HAS NO RESERVE AND VERY FEW OWNERS LIVE THERE ONLY 8 OUT OF 24 APT AND 2 IN FORECLOSURE AND A FEW SHORT SALES.