There was a thread a couple of months back where I posted about a friend who was contacted by his bank about loan re-structuring before his teaser rate arm,which he cash out refied into, was to adjust. He had not missed or been late on any payments. The bank was Chase and the deal is finished. He was given a fixed for 30 years at about 6.5%.
Hopefully things will work out for them. He and his wife used the money from the refi to pay cash for place in South America they hope to retire to.