Homeowners with an underwater mortgage who may be having trouble meeting their monthly mortgage payment have often sought out forms of mortgage aid which can make their home more affordable. While principal reductions are not being widely used by many lenders, there is hope in the form of underwater mortgage refinancing for homes that are owned or guaranteed by Freddie Mac and Fannie Mae.
Traditional refinancing for certain homeowners in good standing has brought record low mortgage interest rates over the past months but homeowners who have seen a substantial drop in their home’s value have not been able to take advantage of this type of refinancing. However, homeowners who simply need a way to make their underwater mortgage more affordable might be able to use this underwater refinancing option from Fannie Mae and Freddie Mac.
Some homeowners have grown so frustrated with their underwater mortgage that they have simply walked away but more and more options are being made available for homeowners who are in this position. Short sales, underwater refinancing, and even in limited cases principal reductions are options for underwater homeowners who may have seen their home’s value dropped over the past months.
A homeowner with an underwater mortgage should never consider defaulting as an option, especially since there are many alternatives. Underwater homeowners are often advised to talk with their mortgage lender or consult resources like the Making Home Affordable website in order to see what forms of underwater mortgage assistance may be available to them.