Hello-Our rental property (a condo) is worth approximately $140,000The balance on the first mortgage is $79,000, and the interest rate is 5.25%. The balance on the second mortgage is $94,000, and the interest rate is 9.00%. Since technically, we are underwater due to the second, is there a program that will enable a refi of these two mortgages into one? We are located in San Diego County, in the city of Alpine.Thank you in advance.Deborahdac6902@yahoo.com

I am not aware of any program that will allow you to COMBINE a first and second mortgage into one new mortgage when you are underwater. The programs that DO exist will allow you to refinance the first mortgage only. You would have to leave the second alone. The fact that it is a rental property just makes it even harder. Contact a local California mortgage broker for more assistance. Good luck. www.HARP-Refinance-MN.com

i challenged my second mortgage lender .. took it from $46,000 owed to $10.000 it can be done...i am very good at dealing with lenders for the last 25 years.. I use to be a underwriter, so i do have a advantage.. email me at yourloanpartnerforlife@live.com linda if you need any assistance .

I was replying to your question in regards to refinance when you are under water. Unfortunately, there is not a loan that you can refinance and include both your first and your second. There is the HARP loan in which if your investor is Freddie Mac or Fannie Mae, they acquired your loan before May of 2009, and you have not been late for the last 12 months on your mortgage, you would be able to refinance your first only, and you would have to subordinate your second. This would be a refinance so you would have to qualify and there would have to be a benefit to you. Please let me know if you have an questions.