The Obama Administration has asked that more be done to make principal reductions for homeowners with an underwater mortgage. Lenders like Wells Fargo have been scrambling to help troubled homeowners and at times have been overwhelmed in doing so.
Homeowners can attest to the fact that it seems little gets done when dealing with big lenders like Wells Fargo, despite decent numbers coming from the home loan modification program. However, Wells Fargo and other top lenders have met with trouble of their own in making home loan modifications for homeowners.
It is hoped, though, that these new principal reduction options are going to make homeowners with an underwater mortgage less willing to simply walk away from their home. Homeowners that have viewed there home as an investment are realizing they were sold a house that may have had an inflated price and they now want something done about that.
While Wells Fargo isn’t the only lender that is having trouble with homeowners and underwater mortgages, homeowners should be aware that there are principal reduction options available. While not every homeowner is likely to get a mortgage principal reduction, checking with a mortgage lender about your options couldn’t hurt.