Homeowners who are struggling with an underwater mortgage have been able to find assistance through various mortgage aid plans from the Making Home Affordable Program. There have been such programs as principal reductions or underwater refinancing options that some homeowners have used in order to make their underwater mortgage more affordable, but these mortgage assistance programs have not been available for all homeowners.
Principal reductions are not offered widely by some lenders as these lenders feel that using principal reductions on an underwater mortgage is not something that is practical or should be practiced outside of a few cases like instances where homeowners have lost a significant amount of value in their home and are in an area where they are unlikely to regain any of the value they lost. Also, homeowners who are having trouble making their mortgage payment due to an underwater mortgage may have a better chance of getting a principal reduction, but this is not common among all lenders nor available to all homeowners.
Homeowners who simply want a more affordable home loan so that they can keep a roof over their head have turned to underwater refinancing options that are available to homeowners whose mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. Again, this option is not available for every homeowner, but those who have an underwater mortgage may be able to take advantage of this type of refinancing if they qualify.
While there are options like short sales or deed in lieu of foreclosure plans which can help homeowners who either want out of their underwater mortgage predicament or can no longer afford their home but want to avoid foreclosure, many homeowners are often advised to look at options with their lender when it comes to dealing with an underwater mortgage. There also are such resources online as the Making Home Affordable Program’s website which can offer homeowners information on these mortgage assistance plans.