They will if your credit still qualifies. If you are in a repayment plan its most likely you have hurt your credit. It may not be high enough anymore.

You certainly can refinance. However, you will have to pay off the existing mortgage amount with the new mortgage.

Generally speaking, no they won’t. Right now, though you may be in luck. There is a big push by Congress and the industry in general to “fix” this whole fiasco of subprime mortgages going into default. You may be able to qualify for some help. Check with a few mortgage agencies and see what they say.

Do: get a fixed rate long term loan
Don’t: get anything balloon, ARM, or interest only.

Expect to have to suck up some of the losses by adding them into the loan. Either from your current lender or from someone else.