Many people that are struggling with their mortgage are seeking out help through various mortgage assistance programs from the Obama administration. The Making Home Affordable Program has a variety of plans that can be beneficial for homeowners who may be struggling to pay their mortgage.
Homeowners, over the past few months, have been seeking out home loan modifications and refinancing options in situations where a home may be underwater. Home loan modifications are simply a way to make a mortgage more affordable by either lowering a homeowner’s interest rate, monthly mortgage payment, or a combination of both.
Underwater mortgages, on the other hand, are causing many homeowners trouble as principal reductions are not being widely used by lenders. Unemployment or underemployment have been causing many homeowners to struggle to make their monthly mortgage payment and when a homeowner has an underwater mortgage it can be difficult to refinance their home to a lower, more affordable rate.
The Home Affordable Refinance Program was set in place to assist homeowners who might have an underwater mortgage refinance their home to a more affordable level. Underwater mortgages have been a problem that has arisen over the past months and, coupled with unemployment, has been causing many homeowners a great deal of stress.
While there have not been any perfect lenders in the home loan modification program and many homeowners have struggled to get a modification, homeowners should still be aware that there are mortgage assistance options available and anyone who may be struggling with their home loan should contact their mortgage lender to get information on any plans or assistance that may be available.