Homeowners with an underwater mortgage have been looking for various solutions that can help them through a difficult situation. Everything from principal reductions to short sales have been suggested and requested by homeowners and legislators, but not all lenders are working with homeowners in these areas.
Reportedly, many lenders are willing to help underwater homeowners if they are having trouble paying their mortgage payment, but homeowners who feel that their mortgage may have been inflated and as a result are requesting a principal reduction may not get what they are seeking.
Many underwater homeowners look to their home as an investment and for those who may not regain much of the value that was lost it seems pointless for them to keep their home. These homeowners are often looking for short sale options if a principal reduction is unavailable. However, trouble arises when it comes to short sales due to second mortgage holders’ unwillingness to allow a short sale to go through.
There may be hope for homeowners who are having trouble with their mortgage payment or who live in an area where they are unlikely to regain any of the value they lost on their home. Many lenders are willing to use principal reductions in these cases, but homeowners that are asking for a mortgage principal reduction simply because they want to make a profit on their home when they sell in the future are finding resistance.
In terms of short sales, there have been incentives offered to second mortgage holders, so there may now be better options or opportunities available for homeowners that want to be rid of their underwater mortgage.
Homeowners are being advised to contact their mortgage lender if they’re having trouble with an underwater mortgage or if they want alternative options in dealing with their underwater mortgage. While some homeowners may get no assistance, anyone who is having trouble keeping a roof over their head due to an underwater mortgage should be able to find the aid that they need to keep their home.