What to do?

[Angela Marsh]

We got one of those "subprime" ARM loans back in 2004, even though we put
$25k down. It's $200k is now with BAC at about 2.75% and the second of about
$71k is with GMAC at 9.5%.

And of course with all the bailouts and everything, we're still underwater
and no one will refi us with a 30 year fixed.

So our home value is now about $220k instead of $270k or so.

What do we do now? We want to consolidate and refi the whole thing so that,
if things hit the fan, we wont get stuck with 25% interest rates and lose the
house. But people are telling us that because it's underwater, no one will
refi us now, as long as we're able to make the payments.

So is there help for us, or do we just have to wait and see if things hit the
fan before we get help? ( or maybe lose the house? )