Everybody asked me, "Hey, I'm upside down in my loan, but I've never missed a payment. Why can't I refinance and take advantage of the lower rates?"
This is a good question and the answer has a lot to do with making our economy better. Basically, rather than allowing a ton of properties to foreclose, the government could take a smaller loss by just allowing you to refinance at a lower rate, even if your house is worth less than the market. This puts actual dollars in the economy!
That is what the Obama Administration is doing now. Here's the take away message: call the lender who gave you your loan and ask them if you can do this. Read more »