Many homeowners are looking for solutions to the problem of underwater mortgages that have been causing many homeowners to grow so frustrated with their home that they are simply walking away from their mortgage payment. Some homeowners are trying to sell short, but they still will owe the bank money, so homeowners are asking for answers from Fannie Mae, Freddie Mac and the Obama Administration for a principal reduction plan for underwater homeowners.
The Obama Administration has had a refinancing program in place for underwater homeowners, but making a homeowner’s monthly home loan payment cheaper, when their mortgage is underwater, simply is not doing enough for certain homeowners.
Many people want value in their home, so they want the principal reduced on their mortgage so that it is at the market value of their home, they will pay less now and have a higher chance of making a profit when they sell their home in the future.
Many people argue that principal reductions are unfair and that homeowners who make profits certainly reap the benefits, so they have to deal with a drop in value as well since they are two sides of the same coin.
Yet, the amount of homeowners that are not concerned with their credit rating and just walking away from mortgage obligations has caused lenders trouble and has been making banks stricter with their policies about helping homeowners that are struggling. So, it seems that homeowners that want a principal reduction on homes guaranteed by Fannie Mae or Freddie Mac have put lenders and the Obama Administration in a difficult position as they are essentially saying they want a lower mortgage principal or they simply will walk.