The problem of underwater mortgages has plagued many homeowners and mortgage lenders as well. Bank of America is one of the nation’s largest mortgage lenders and has had many homeowners who have seen the value of their home drop substantially over the past few months.
However, there are mortgage assistance options for Bank of America homeowners from both the Making Home Affordable Program and from in-house options provided by Bank of America. Principal reductions are one area that homeowners have been asking for lenders to use. Some lenders have been unwilling to use principal reductions across the board, but Bank of America has said that in cases where a principal reduction is needed they will work with homeowners to get their mortgage more in line with their home’s value.
Many homeowners have been asking to simply be rid of the frustrating situation that comes with an underwater mortgage and some lenders are allowing short sales to be made for homeowners that are unlikely to regain any value that their home has lost. While there are some refinancing options available for underwater mortgage homeowners as well, options for homeowners who either want to keep their home or simply want to get out of their underwater mortgage may be available.
There have been troubles with mortgage assistance programs, both from the Obama administration’s home loan modification program and in-house programs from each lender, it still being advised that homeowners should seek out mortgage assistance if they face foreclosure or are having trouble paying their home loan.