How do you refinance an upside down mortgage?

To refinance an upside down mortgage, you will need to contact your lender to determine if they are willing to work with you in your current situation. You will need to pay off or restructure the first loan, and this is possible only if the lender is a willing participant. Fortunately, in markets where upside down loans occur in large numbers, lenders are often willing to work with borrowers to help them avoid default. Contact your lender to ask for refinancing options, which may include lengthening the life of your loan. If your lender is not willing to work with you, consider contacting a debt assistance organization.