Is there a way to refinance an upside down mortgage?  Thousands of homeowners in the Houston area owe more money than their home is worth in the current market, which means they are upside down on their mortgage.  An example is, in 2006, you purchased your home for $250,000.00.  At that time you put no money down and did a 100%  LTV  loan.  Today, your home is currently worth only $200,000.00.  What are your options:

If you are under water by 25% or less then you might benefit from a recent goverment program called "Home Affordable Refinance,"  which was partly created to help upside down homeowners.  However, in order to participate in this program, your present mortgage loan must be currently owned by Fannie Mae or Freddie Mac.  To check if your mortgage is currently owned by Fannie Mae Click Here .  To check if your mortgage is owned by Freddie Mac Click Here.   Additionally, you  must be current on your mortgage (no 30-days late in the past 12 months).   

If it is not possible to refinance because you are upside down by more than 25%, then consider the following options:  Contact your present lender to do a loan modification;  Stay in the home and hope over time you will be able to make up the difference or consider a short sale.  I will discuss these options in a future blog.