Underwater mortgages have been troubling for many homeowners across the nation as home prices have dropped in various areas over the past few months. Homeowners have been very frustrated when they find that they owe more on their home than their home is actually worth and this has caused many to simply walk away in frustration.
However, alternatives like short sales and underwater refinancing plans have been made available for individuals who either want to simply be rid of an underwater mortgage or just want to keep a roof over their head. One big problem underwater homeowners have faced is the inability to pay their mortgage payment when the value of their home drops.
If traditional refinancing has been available for these underwater homeowners there may have been few problems, but obviously, when a home loses value and a homeowner owes more on their home then it’s worth, traditional financing is not an option. It’s for this reason the Home Affordable Refinance Program was begun.
Homes that are owned or guaranteed by Fannie Mae and Freddie Mac often have a better chance of refinancing when their mortgage is underwater. Homeowners who simply wanted a more affordable mortgage payment and are unconcerned with the fact that their home has lost value may be able to find assistance through the Home Affordable Refinance Program.
Homeowners are encouraged to consult the Making Home Affordable website or talk to their lender and ask about underwater refinancing options. While there are various ways in which an underwater mortgage can be handled, homeowners who simply need a cheaper payment may be able to refinance their mortgage despite owing more than their home is worth.