Any suggestions as to how to refinance when your upside down on a mortgage?

My husband and I bought a home from my husband's former employer for 0,000. The home appraised at 0,000. The employer co-signed and place up a ,000 CD as collateral. We didn't have excellent credit and had to pay some things off, so the employer did that for us, so we owed him money. We paid him back with the loan, but now we have to refinance the home come January and we have not been able to afford to do any improvements on the home, and It will not appraise at what we owe on it. No one is willing to refinance 100% because of the negative equity, and I don't have the ,000 plus closing costs to pay the differece. Not sure what will happen if we don't get refinanced. Can't sell either I would assume. Any suggestions?
Payments have always been on time. We can afford the payments. That has never been a problem. At the time, it seemed they were doing a nice thing for us. I've never bought a home before, and we were living in a mobile home that was older than dirt and falling apart, and I was desperate to get out of it. I had no thought this would come back to bite me in the ass. Seemed at the time they were doing us a favor, but now I see they took advantage of our terrible situation. Of course I never would have agreed to do this if I had known that we would end up in a situation like this.
This is what was written about the CD:
AGREEMENT REGARDING PLEDGE OF COLLATERAL AND GUARANTEE

"Bank" is lending the necessary proceeds to "buyers" to buy said property on the condition that the loan is guaranteed by the "seller", and on the condition that a Certificate of Deposit owned by "seller" is pledged as collateral for said loan.
It is hereby agreed and stipulated by and between said parties as follows: 1. To the extent that "sellers" are required to pay any amounts based on the guarantee, or on the pledge of additional collateral in the form of a CD, they shall be entitled to a n assignment of whatever security is held by the "bank" for the amount of said payment. 2. Any assignment made by virtue of paragraph 1, shall be subordinate to any remaining interest held by "bank". 3. If "sellers" are required to pay any amounts on the mortgage bu virtue of their guarantee, they shall be in the same position by virtue of the assignment as the "bank" and would then own all the

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Tags: bad situation, certificate of deposit, closing costs, collateral, extent, improvements, mobile home, money, negative equity, nice thing, older than dirt, pledge, proceeds, quo