Need Help with Refinancing Problems?

My mother is refinancing her house, or at least trying to. She bought her house for 210,000 in 2006 at full price. She got an 80/20 loan so she has two payments. She was doing a streamline refi and everything was going fine, except one thing. Many of the houses in the neighborhood went into foreclosure and re-sold for about 160,000 to 170,000. Many of these people were put into adjustable mortgages and when the market dropped, they went into trouble and couldn’t afford the payments. Anyway, my mother has become upset by this. Is anyone knowledgable about this and can give her some hope other than what I have said. The mortgage broker told me that the last house was sold 5 months ago and that the appraiser had to wait until it had been 6 months from the purchase date and then he would be able to use any new construction near to her for the comps. There is a new neighborhood about 1/4 of a mile from her house with many new houses and new construction right this very minute. Is there anyone that can give her some hope or let me know how these situations go. The houses in the new neighborhood are going for no less than 250,000 and range from small to big. It is stressing me out that she is upset about it because I want any and everything to work out for her. She just recently lost her husband who she was married to for about 3 weeks after only 1 year of dating, and he had no life insurance. (they hadn’t gotten around to everything yet…I questioned this too, believe me, my mother is very smart, you just never know how much time you have…anywho…) So, she is trying to pay that as well as lower and get one mortgage so she can pay for everything. Please help if you can.