Homeowners who have been suffering from an underwater mortgage may have refinancing opportunities through the Home Affordable Refinance Program. Homeowners who have a home that is owned or guaranteed by Fannie Mae and Freddie Mac may be able to use this program to refinance an underwater home loan, which has been causing them much strain.
When a homeowner owes more on their home than their home is actually worth it can be a very difficult situation. Many homeowners have grown so frustrated that they simply walked away from their mortgage obligation and allowed their credit score to take a hit that will follow them for years down the road. Many mortgage lenders have been trying to combat these underwater mortgage troubles by offering principal reduction or other forms of assistance, when they feel principal reductions are not warranted.
However, lenders are also offering homeowners a chance to short sell their underwater mortgage if a homeowner is simply unable to deal with their mortgage situation. Yet, many homeowners with an underwater mortgage simply want a more affordable home loan. It’s for this reason that this underwater mortgage refinancing program has come about and it is hoped that homeowners will be able to benefit by keeping a roof over their head despite the fact that they have lost value in their home.
While some lenders outside of Fannie Mae and Freddie Mac may have offered underwater mortgage refinancing opportunities, the Home Affordable Refinance Program is, again, directed at homeowners with a Fannie Mae or Freddie Mac home loan. Homeowners who are struggling are often advised to contact their mortgage lender or consult the Making Home Affordable Program’s website for more information about assistance plans that are available to deal with an underwater mortgage.