If my house is now worth less than I owe on it, can I refinance?

 You'll have a difficult if not impossible time finding a lender willing to refinance any of your loans. You have to have at least some equity, usually 5% or more, before the great majority of banks or mortgage companies will even consider a refinancing. I wish we could offer a brilliant solution for this dilemma. There are literally hundreds of thousands of homeowners facing the same problem with their adjustable rate mortgages. They can't keep up with rapidly the rising payments, but can't sell or refinance because they owe more than their homes are worth. In most cases that's because they financed 100% of the purchase price expecting the home to appreciate in value. Only it didn't. It's declined. That's why we're seeing a spike in foreclosures across the country. About all you can do is make some calls and see if you can find a lender who will help you out. Definitely call your current mortgage holder and some local mortgage brokers who have been dealing with this problem. If you can't find a new loan, then you'll have to hunker down and make the higher payments until home prices start rising again. Most experts expect homes will begin appreciating again in mid '09 or early 2010.

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