Many months ago I contacted my bank about re-financing my house to a lower interest rate and I was told "We don't do 100% loans." (what's with that since they already have a loan on this house at 100% of its value?!?!?)
Even though I put $70k down when I bought the house, the value has gone down to about what I owe on it now! I was so mad!!!! I don't want to disparrage anyone in the situation but I was so mad that people who were defaulting on their loans, who didn't put any money down, who couldn't afford the home in the first place, etc. were getting low interest loans, principal forgiveness, all the help that the government could give them but I, who NEVER, EVER has been late on ANYTHING couldn't get a break.
I called my bank last week to ask again and found out that with a new program, the home affordability program, they can do up to 125% loans and that I qualify for that. It's lowering my interest rate and my payments will go down a few hundred dollars per month! The state also did a property tax reassessment and that lowered my payment by $130. It's finally to a more comfortable payment for me.
I read an article today that a large percentage of the mortgage defaults happening now are "strategic" defaults. That's people who can afford their payments but they are so far under water on their loan to value that they are just letting it go. My first thought was... I bet a lot of people are as mad as I was about the situation I was in.