Homeowners who have an underwater mortgage may have home loan refinancing opportunities from the Making Home Affordable Program. One situation that is quite difficult for homeowners is one in which they owe more on their home loan than their home is actually worth. In cases like this, some homeowners are unable to meet their monthly mortgage payments due to their home’s value dropping, so the Home Affordable Refinance Program has been set in place to help homeowners who qualify.
Typically, homeowners who want to refinance their home loan will need to have their mortgage owned or guaranteed by Fannie Mae or Freddie Mac in order to take advantage of this type of refinancing. Low mortgage interest rates have been offered over the past months and many homeowners have been unable to refinance their home loan for a lower mortgage interest rate and monthly mortgage payment because their home is underwater.
Yet, homeowners who are struggling to simply keep a roof over their head and have an underwater mortgage may not be able to benefit from a traditional home loan modification. While some homeowners have asked for principal reduction, those who are struggling because their home has lost value are in need of alternatives in dealing with their underwater home loan.
While some lenders have been able to reduce mortgage principles on underwater homes, as well as, offer forms of underwater refinancing, the Home Affordable Refinancing Program may be beneficial to homeowners who qualify seeing as how underwater mortgages are becoming more common in some areas. While there are ways of dealing with an underwater mortgage, like a short sale, in which a homeowner can get out of their mortgage obligation by selling their home, this is not a route that every homeowner wishes to take.
Homeowners who are struggling with an underwater mortgage are often advised to contact their mortgage lender or consult the Making Home Affordable website for more information on underwater mortgage assistance programs and how their lender can help them in their personal mortgage situation.