Although some Arizona residents may be unfamiliar with the term “underwater mortgage,” they are likely to be very familiar with the consequences. A mortgage is said to be underwater when the amount owed on the loan exceeds the market value of the real property. In this situation, there are few options for homeowners:

-- Sell your home, pay off the mortgage, and move to more affordable housing. In this buyer’s market, however, selling may be easier said than done.

-- Continue paying your high mortgage and remain in your home. The real estate market will always be in flex, so holding on to your home and waiting for market values to improve is not unreasonable.

-- Stop paying your mortgage and default on your loan. This often brings individuals and couples to our doors, in pursuit of bankruptcy protection.

-- Refinance the loan under HARP, if you qualify. With recent enhancements to this federal program, you may yet be able to refinance your home loan at an affordable interest rate.

There is revived hope for homeowners who have kept current with their bank-owned loans, knowing full well they owe more than their homes are worth. You may qualify for the HARP if:

1. You have a conventional mortgage.

2. Your mortgage is backed or owned by Freddie Mac or Fannie Mae.

3. Your current mortgage was “securitized” or sold to Fannie Mae or Freddie Mac before June 1, 2009.

4. You are current with your mortgage (not behind in your payments or in default).

5. You haven’t already refinanced under HARP (only one HARP refi to a home).

6. And you are underwater on your home loan and need to refinance.

If you affirmed the six pre-qualifiers above, then this article has some very good news for you and your family...