Question by sphix: can you refinance even if your property is worthless than you owe?
I have mortgage that is more than what the house is worth in this market, is refinancing option still available?
Answer by David M
You can refinance, but not for more than the property is worth. You would have to come up with the difference in cash. Which I doubt that you can do if you’re asking this question.
Know better? Leave your own answer in the comments!
Probably not. There used to be banks out there that did 125% LTV loans, but they are part of the problem with the housing market and going out of business.
Depending on the amounts you can talk to your bank to see if they will lower the payoff amount, so that you can refinance, this option would be to help you avoid foreclosure if that is the issue at hand.