Underwater refinancing opportunities for homeowners that have seen the value of their home drop may be available for those whose mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. The loss in home values have been troubling to many homeowners across the nation and as a result there have been plans implemented from the Making Home Affordable Program to help homeowners deal with the situation and keep a roof over their head.
Yet, some homeowners have been unable to get the assistance they need as some lenders disagree on the method about how they should deal with underwater mortgages. Principal reductions have been something that many homeowners have asked for, but there are lenders who believe that this is not the best solution in dealing with underwater mortgages. Typically, homeowners who see their house as an investment want to make their home more affordable so that they do not pay more than it’s worth and put themselves in a situation where they cannot profit from their home if they choose to sell.
However, Fannie Mae and Freddie Mac homeowners may be able to use refinancing as a way to make their home more affordable, in cases where homeowners simply want to keep a roof over their head. There are some instances where the loss of a home’s value has made it difficult for a homeowner to meet their monthly mortgage payment, and since a home that is underwater cannot be refinanced traditionally, this underwater refinancing option may be helpful.
While an underwater mortgages a difficult situation, and it’s understandable that many homeowners are frustrated by owing more on a home than the home is worth, many advisers are telling homeowners who are struggling with an underwater mortgage to contact their mortgage lender and ask about assistance when dealing with an underwater mortgage or if homeowners have a mortgage with Fannie Mae or Freddie Mac they may be able to use this refinancing opportunity to their advantage.