Specifically: skipping RLMO, having a balloon payment, and prepayment penalties.

Even though they didn't provide an official letter of denial.

Switch your interest rate to 8% and run both your current 5 years and after your 5 year balloon period. 

Do it over 40 years with a ten year balloon and for ten years it will be super low then refinance at year 10.Those are two options

Their response was that they'll review my request and send me a letter in 10-business days of their findings. 

I assume the post office can do the timed/GPS photo of the letter being delivered on the doorstep? 

What I was debating on doing is actually going to him this weekend with a surrender letter.

Speak to your lender about FHA requirements to ensure you qualify for what you are looking for and get a pre-approval letter that will help you get a competitive edge when looking for a deal like the one you have described.

I had an experience with Fund & Grow where they work on the customer behalf to get approval for 0% Apr business cardsthey have a PoA to work on the behalf of the Client which is totally fine - however Lender do not like that and one of the Lender - FNBO - that approved me for a Business Card with $ 15,000 at 0% Apr for 12 months - after 2 weeks sent me a letter reducing my credit limit to $ 3,000 and upon calling the Lender they told me the reason of the lowering was due to the fact they found out there was a 3rd party pulling the request of the business card.I explained that to Limitless Funding Source and I asked - in case some like this happens - your fee is 15% to be paid within 48 hours from funding but if I got let's say reduced $ 50,000 to $ 25,000 or lower I will know maybe after 2 weeks - and in the meantime I already pay you guys 15% of $ 50,000 which is $ 7,500 for your fee and then I have only $ 25,000 available with $ 7,500 cost which is a 30% fee - are you guys going to refund me the difference?

I'm unable to find a sample adverse action letter with Zillow as the screening/consumer reporting company.