My daughter has a mortgage that is underwater. As a result she cannot refinance. Her mortgage is not insured by fanny or freddy. I think that the proposed mortgage thing might address this but I can find no information. This may not be a place to post thing but I am wondering (some of you folks seem to know things!)

My daughter is making her payments, she is not broke and has a job. Unless there is a solution, reasonably quick, I am going to tell her to buy another place and then simply let this one go back to the bank, especially since they have refused to even talk about refinancing let them have it back. Except for her mortgage she lives on a cash basis so, if she buys first, and then abandons, this will not hurt her. She is not whining about being underwater but cannot understand why the existing mortgage cannot be refinanced due to the property being worth less than the mortgage amount (she believes that she borrowed the money, is willing to pay it back, but also feels that she should be allowed to refinance just like anybody else).

Her current interest rate is around 7%. Not allowing her to refinance down to 4-5% is just crazy. The bank is not using good judgment but I see no reason for her to be held hostage by their greed and intransigence. I suspect there are some that might have thoughts on all of this?