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system
pay down on second mortage when underwater?
user
there are programs out there which will let you refinance even when underwater, under the government's harp program. you are overpaying by nearly $7,000 per year compared to a refinance to 4.5%. a classic example of how the bubble hurt people who overextended themselves a bit as housing shot up.  the bank risks a $50k loss if you default or short sell this property. i'd go in and sit down with a branch manager and ask what they can do to recast the loan to a lower rate as you are ready, wiling and able to keep the house and make your payments. good luck.
assistant