It looks like we won't be refinancing our house any time soon

Yes we are in the same boat, we owe more for our home then what it is worth so we would not be able to refinance. I am hoping to have the money to pay off our second mortgage before the balloon comes to terms.

Does the same lender hold both loans? Are you dealing with the same lender who holds your loans now? If not, contact them and see what they can do for you. If you are lucky enough to have the same lender for both loans they might refinance without a new appraisal, since they don't have to give you anymore money, or maybe just closing cost, Title, recording, and processing. They would much rather help you now before you are in trouble then reposes your home. If you have different lenders contact each, tell them your situation and see if they have anyway to help. I would even write a letter explaining the situation to any lenders you have now, make sure you send it return receipt so that you can state you sent it to them before the loans got into trouble. If it was me I would plead that a money problem is coming up even if you can afford the higher rate, your spending will be curtailed. Good luck

hi reinydawn! my in laws are having the same problem. the rates are really stiff and money is not easy to come by. they are thinking of getting another new loan, but it is hard to maintain. anyway, my brother in law offered to help them by buying out their other lot. so maybe, my in laws will be able to pay the loan and get their life insurance back, which was collateral for the loan. i hope everything works well on your end. take care and God bless you! happy mylotting!

I'm so sorry to hear this reiny, I was hoping for you that this would go through. Five months is a good time, more is needed I know. Maybe some houses will see for better prices around you. Something has to give. I hope it works out for you to where you can et what you need and want.

These really are uncertains times that we are living in and I understand your desire to want to refinance to a lower interest rate. Hopefully you will be able to do this before October and hopefully the economy will turn around soon.

I'm sorry it hasn't worked out for you to refinance. I hope you can do something before you ARM rates changes. We were lucky and ours appraised for enough to get the loan that we needed. We combined our first and second and lowered our total payments. It's a big relief while worrying about layoffs.