You can't refinance since your home won't appraise for what you owe. You can't sell b/c of the same problem. It's a huge problem right now that's fueling the short sale/forclosure craze. KEEP CALLING your lender, they will realize they can either give you a 30 year loan or they are going to be in trouble. It's costs the lender a lot to go to forclosure, they don't want that right now. Call and ask to higher up people, keep calling until someone helps.

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A woman is like a teabag. You never know how strong she is until she gets into hot water.-Eleanor Roosevelt

I definitely agree w/the other responses to try and lower your payments but in lieu of that....

Could you and/or your husband do anything to raise extra $$, such as:

- rent a room in your house
- rent space in your garage, for someone's car, boat, etc.
- get a part-time job
- babysit
- deliver newspapers
- sell things on Craig's list and eBay

Start cutting back today and maybe you can have several months saved up.

Good luck.

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The higher the hair, the closer to heaven.

I'm sort of mystified why you haven't yet contacted a mortgage broker. If anyone can help find a mortgage solution for you, it will be a broker.

Good luck.

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"I've been rich and I've been poor but independently wealthy is where it is at."

We too are in ARM(ours will reset in 2011) and are wondering why your interest is going up and not down - our is. Current refi rate ARM rate is 5.34, so you should be able to force your lender to negotiate.

I believe they will refi for the same value of your loan amount and not the home current home value.

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And the peace of God, which transcends all understanding, will guard your hearts and minds in Christ Jesus. Phil:4:7

I agree...start with your current lender - they have the most to lose. If they hedge, let them know you will start looking around for a different lender.

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Make someone's heart smile today.

Call your lender and express your concern over being able to make the new higher payment. I have heard of lenders lowering interest rates, especially now with the mortgage crisis.
Also, are you sure your home is worth less than you owe? You might be suprised. Get an apprasal!

We have used a mortgage broker twice now when we needed quick financing. The BANK dragged us around for 2 months hemming and hawing whether they'd finance us, gave us nothing but grief jumping through hoops. The mortgage broker had us in closing within 3 weeks, and luckily we didn't lose the house purchase in our case. You may pay a fee for their services (but its absorbed into the loan), but if you need something fixed in a timely manner, a mortgage broker is sometimes easier to work with than a bank.

Keep calling your lender. A friend of mine received a foreberance when her interest only loan reset to $800 more a month than what she was paying. I think she has 6 months of no home loan payment, which she's using to save as much as she can.

I also agree with calling a Mortgage Broker if you can't get anywhere with your current lender.

Good luck!