More and more homeowners have been experiencing underwater mortgages as of late where they find they owe more on their home that it’s actually worth. This has been a problem for lenders like Citigroup and is a new challenge for big lenders. Citigroup has some of the best numbers in the home loan modification program so homeowners with Citigroup are hoping for principal reduction assistance as well.
Homeowners have been frustrated with underwater mortgages to the point that they are just washing their hands of the situation and walking away from their mortgage commitment, leaving their home in the hands of their lender.
Many people dislike principal reductions, some lenders are in that group as well, but when many homeowners bought their home it was overpriced and now homeowners feel that a little help in the form of a principal reduction is in order.
However, there are those that feel principal reductions aren’t a fair practice, but there is no argument that with the wave of underwater mortgages that have arisen, something needs to be done.
While not all big lenders are offering principal reductions and even homeowners with those lenders that are, still may not have an easy road to travel, but homeowners that are struggling should be aware that there may be options out there in dealing with an underwater mortgage.