Many people are struggling with an underwater mortgage and any homeowner that is in the situation where they owe more on their home and their home is worth is going to be frustrated. However lenders, as well as the Obama administration, have various options for underwater mortgage assistance plans.
While the Making Affordable Home Program has a principal reduction plan set to take full effect in the coming months, some lenders are making principal reductions currently or those who do not feel principal reductions are warranted in every case have alternate programs that may be beneficial to underwater mortgage homeowners.
Many lenders have refinancing options for homeowners that are struggling to make their mortgage payment due to an underwater mortgage or homeowners that simply want to be rid of their home may have short sale options from lenders as well. Principal reductions, again, are not widely popular among all lenders but there are certain banks that are against mortgage principal reductions who say there are exceptions in cases where homes have lost value in an area and are unlikely to see increases in that value in the future.
Underwater mortgage homeowners, no matter their bank, are being advised to talk with their mortgage lender about options available to them. There are a variety of plans that may benefit anyone with an underwater mortgage, ranging from homeowners who simply want to keep a roof over their head to those homeowners who wish to be free and clear from their current home.