If you haven't noticed the real estate market has been in the tank for quite some time.

There were many hardworking people who purchased homes during 2003 -2006 and in that time paid higher prices than today's current market price.  

This not only cost them money, due to some sizable down payments, but it cost them future opportunity.

Over the past few years there were so many families who were facing the current market value of their home being less then what they owed on their home, or the were Upside down on mortgage.  

Now when you got your current loan you focused on interest rate and a loan program or term that seemed to fit your families needs.  Time has passed and now you see interest rates on mortgages in the 4% range and you want to refinance my upside down mortgage.

Up until now you never needed to know who insures your mortgage or which avenues you needed to pursue to actually refinance an upside down mortgage.  

If you are insured by Freddie Mac then the Freddie Mac Upside Down Mortgage Program may be just what you are looking for.  There are two very unique mortgage programs built into the loan that Freddie Mac Relief Refinance for upside down mortgages.  This is the Freddie Mac Making Homes Affordable Program in action.

1.  Same Servicer Program - This is the semi-streamline version on the program.  It will allow up to 125% loan-to-value with just the first (excluding the second mortgage).  The streamline Upside Down Mortgage program aspects are limited appraisal process and light eligibility requirements for the homeowner.  Problem- secondary financing must subordinate and must be refinanced by the same servicer.

2. Open Access Program - This loan program requires full underwriting.  The benefit could be access to a more manageable mortgage company and switching servicer.  This is more like a traditional refinance although the same 125% loan-to-value applies.

Overall highlights for the Freddie Mac Upside Down Mortgage Program.

• Mortgage must have been originated prior to May 31st, 2009
• No late mortgage payments within the last 12 months
• Must benefit the homeowner by lowering interest rate, lowering mortgage amortization period (decreasing the number of years owed) or change the terms of repayment (refinance out of an ARM or Interest only Mortgages)

The additional good news is that this loan is a great program that is considered a no closing cost refinance.