Are there any options for refi or modification with fallen home value and no equity as a result?Here's our story...Michigan home purchased in 2006Appraised value (2006) $230KPurchase prince (2006) $215K30 Year Fixed Loan @ 7.25% (Fannie Mae backed/serviced by WFHM) Our home value has decreased in excess of 33% since 2006 due to the market and unemployment conditions in Michigan. We survived unemployment in the past without defaulting, but we continue to see our monthly contributions do very little against an interest rate that's double the current rate on a loan that will never be recovered. We owe $207K on principal and barely make a dent each month with so much $ going to interest.August 24 2011 - Waterford00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.