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How to get help with a home underwater

We have a home in Castro Valley, CA  Purchsed it in 2006 or so at the very high price of $460,000. It was built in 1939 and has 1,054 sq ft.  The home is now worth $238,000 per zillow.  We have 2 loans with the 1st at $375,000 and the interest at 6.75 and the second at $50,000 with the interest at 5.75.  Does anyone have any suggesstions to bring our $4,000 mortgage down?
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March 26 2012 - Castro Valley
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what is "AG refinance program"

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March 27 2012
You may want to call your servicer and ask if you qualify for the AG refinance program. That may be your best option. Good Luck.
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March 26 2012

The current rates are in the 3-4% range. Call your current servicer first to see if you qualify for a rate reduction. Then see if it is worth refinancing. Call around and get several offers before deciding

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March 26 2012
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Well I hope my answer is sufficient...the first loan is through Bank of America and is an "interest only" with the option to pay more.  We can pay the interest only amount, or the interest plus an additional amount to try and pay on the principal over a 30 year loan, and the third option is to pay interest plus an additional amount to pay over a 15 year loan.  The second mortgage is through Wells Fargo and is an interest only loan. 
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March 26 2012
What kind of loan is your first mortgage?
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March 26 2012
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I just checked and the loan is not owned by Fannie or Freddie.  Any
other suggesstions?
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March 26 2012
If you have an eligible loan backed by Fannie Mae or Freddie Mac you may be eligible for a HARP refinance. The first thing to do is check these links to see if your loan may be eligible.

http://www.fanniemae.com/loanlookup/

https://ww3.freddiemac.com/corporate/

From there find a good lender that is able to do everything that HARP2.0 allows for and start the application process.

Sincerely,
Greg

P.S. Assuming your loan is eligible and you qualify, the current lender on your 2nd mortgage will have to agree to subordinate their lien to the new first lien. This usually isn't a problem because they realize it is in their best interest for you to refinance your 1st mortgage to a lower rate/payment.
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March 26 2012
Hey Guys,

There is the new HARP 2.0 loan program that does not matter how far you are upside down. Do you know if your current loans are owned by Fannie Mae or Freddie Mac?Thanks, Marc
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March 26 2012
If your home is owned by Fannie or Freddie, you may be able to refinance.  Use these links to check:  http://loanlookup.fanniemae.com/loanlookup/ and https://ww3.freddiemac.com/corporate/

If so, get back to us and we'll go from there!  Good luck!
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March 26 2012
If you loan is Fannie or Freddie backed. you can try and get a HARP 2.0 loan for the first mortgage and subordinate the second mortgage. you wont be able to combine the two mortgages together, but you should be able to get a lower interest rate on the first mortgage assuming that it qualifies for the HARP program
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March 26 2012
 
Related Questions
How to get help with a home underwater
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Latest answer by emc75
March 27 2012 | 10 answers
Mortgage Rates
 
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