BTW: They do not require a good FICO, equity, or extra income, etc.
As a mortgage banker, I would NOT take the advice of a buy and bail unless you want to take a chance of going to prison for mortgage fraud. I sincerely feel for you in your situtation. If you owe more on the home than the current value, you will not have a refinance option. I would try to renegioate your debt with the bank. Most mortgage company's have improved on helping with solutions that will be a win/win situation. What these "Buy n Bail" yahoos do not explain is if you lie on your new mortgage loan application, you have then committed loan fraud. If you get caught you could go to jail. It has happened in the past with people going to jail for mortgage fraud. We had over 300 people just last month in Arizona arrested for some type of mortgage/real estate fraud. I would not take my advice lightly.
Your first step should be to have an honest talk with your bank. They might be willing to renegotiate the terms of your loan, especially if you can demostrate a hardship. If that does not work try with some other banks, but remember than in order to refinance you will have to pay the difference between the current appraised value and what is owed - and probably some more.
If you have not luck with the banks, your second best options will probably be a short-sale. This will have an impact on your credit, althought it will not be nearly as bad as a foreclosure. You should do everything you can to avoid a foreclosure.
Hope this helps...
You could consider selling the home as a short sale, your credit will take a hit if you do short sale. Lenders are willing to work with home sellers today in many situations resulting in short sales.
The area you live in is also very likely to start rising in value in the future again. We may not see another 2005 for a long time if ever but it should start going up again.
First of all, you are not alone. There are so many people in your situation. I suggest that you contact your lender NOW. Try to speak to someone in the loan modification department. It is possible that you can work out a loan modification that will help.
You see, in America, there is a solution to ANY problem!
For you, the solution is to "Buy 'n Bail"! It's today's Fix 'n Flip!
Remember, with under-the-bus capitalism, you can privatize profits and socialize losses!
So don't get thrown under the bus!