Fannie Mae, Freddie Mac and The Obama Underwater Mortgage Home Affordable Refinance Program

Many homeowners that have trouble with an underwater mortgage may benefit from the refinance program that is offered from guaranteed home loans from Fannie Mae and Freddie Mac.  Homeowners that have underwater mortgages have sought everything from principal reductions to refinancing options, but there has been little aid given to homeowners who owe more than their home is worth.

There are some homeowners that have seen success with the Obama Home Affordable Refinance Program, but there have been far fewer helped in the program than originally intended.  The Federal Housing Finance Agency released a statement announcing the one year extension of this program set to help underwater mortgages and have encouraged lenders to take part in the program so that more results can be seen.

Homeowners who have an underwater mortgage are growing frustrated and some are even walking away from their mortgage altogether.  Some say that inflated home prices are to blame for such a drastic decrease in the value of homes and that homeowner should be allowed to reduce their principal or at least refinance so that they can afford to make their mortgage payment.

Walking away from a mortgage isn’t something that is viewed favorably, but many homeowners see little hope of their home regaining value to the point that they can just get back what they put into the home by selling.  Walking away is not beneficial to a homeowner’s credit score, nor does it help banks or the housing market, so it is hoped that lenders will work more with underwater homeowners through the Home Affordable Refinance Program so frustrated homeowners may be able to at least see a light at the end of the tunnel.