Some lenders in the Making Home Affordable Program are unsure about the Obama principal reduction plan for underwater homeowners. While some lenders are said to be making principal reductions and planning on using the Obama principle reduction plan, there are those who feel that making principal reductions is not a practical solution for underwater mortgages.
Homeowners who owe more on their home than their home is worth are in a very frustrating situation. One solution to this problem has been to provide principal reductions for homeowners that have seen the value of their home drop substantially.
However, lenders feel that by doing this it stacks the deck in favor of homeowners as lowering the price on a mortgage principal because a home has lost value is unfair since the lender cannot increase the mortgage principal on a home whose value rises.
Yet, underwater homeowners want a solution for their mortgage, especially those who see their home as an investment. For those who are simply wanting to keep a roof over their head and are struggling to make their mortgage payments they do have refinancing options for underwater homes through the Obama home loan modification program.
While the programs that are set to help struggling homeowners have not been perfect and many homeowners have struggled to get a home loan modification, it is still being advised that any homeowner looking for assistance in their mortgage needs to contact their lender about what options are available.