ARMs are suspect mortgages, depending on when they were taken out and the back-up documentation which supports them. Your facts are not entirely clear. Do both the 1st and 2nd adjust? You may wish to have an attorney review your loan documents for adequate disclosures. See Boschma here: http://scholar.google.com/scholar_case?case=12271920451388879704&hl=en&as_sdt=2&as_vis=1&oi=scholarr
You may also wish to attend one of the NACA seminars. More information here: http://www.naca.com.
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It is possible that you may be eligible for a loan modification. You can ask your lender for the package and submit your request to them. My law firm does loan modifications and we offer a free consultation. We can assess your position and advise you accordingly. We do not charge any fees to look at your matter.
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You should see an experienced mortgage broker is "short" refinances, which are available for people in your situation. I have a contact if you do not. You can also try for a loan mod, but usually if you are not in default you can not even get your loan modification package into the correct people; you can wait until the 16th of month, technically you are considered "late" and work it that way and then pay the pmt on the 30th with late charge to maintain your credit. But nothing happens that quickly.
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