If your house is “underwater” and you want to refinance to take advantage of lower rates and have credit issues then check out the government’s HARP program. A streamlined (relatively speaking) refinance process. Typically you keep the same lender – just refinancing the rate and term only. I had a client in my office just yesterday that was refinancing their Spokane condo with Wells Fargo reducing their rate from 6.35% to 4.25% at 30 years.
Mortgages — Increased Interest in Expanded HARP – NYTimes.com.