For those of you underwater in your mortgage, the HARP 2.0 program is here to help. The new guidelines put forth by Obama and implemented by Fannie and Freddie will allow people who owe more than their house is worth (underwater) to refinance without an appraisal. PMI is not a problem, as it was with HARP 1.0. Borrowers must be current on their loans and any second mortgage must be subordinated by the lender.

HARP 2 Refinance not ready just yet - Why?

I have been waiting for this for quite some time. My first is at 5.75 amortized over 30 years and I want to refinance to 3.25% over 15 years. I am currently trying hard to discharge my second mortgage because most lenders will not subordinate a second lien holder position with a combined LTV in excess of 100% of appraised value.

I'll let you know how it goes...