The Home Affordable Refinance Program has been set in place to help homeowners who are struggling with an underwater mortgage and may be unable to meet their monthly mortgage payments as a result of losing value in their home. Many homeowners across the nation have seen a drop in their home’s value and are in the troubling situation where they owe more on their home than their home is actually worth.
While options like principal reductions and short sales have been offered to help homeowners who are struggling with an underwater mortgage, those homeowners who want to simply keep a roof over their head may be able to benefit from the Home Affordable Refinance Program for their underwater mortgage. Homeowners who are current on their mortgage payments, have the ability to make these new mortgage payments, and who have a home that is owned or guaranteed by Fannie Mae or Freddie Mac may be able to benefit from this underwater refinancing opportunity.
Many homeowners who have seen their home’s value drop have been working with lenders to make their homes more affordable. However, many homeowners who have an underwater mortgage have grown so frustrated that they simply walked away from their home loan, which is something that lenders want to avoid. Some homeowners have asked for principal reductions, but many mortgage lenders feel that this is not a wide range solution that should be used as there has been backlash from homeowners who have an underwater mortgage but are able to continue making mortgage payments.
While some homeowners may not qualify for this underwater refinancing opportunity, those who do are being advised to contact their mortgage lender to talk about options for refinancing their underwater mortgage. Also, homeowners can consult the Making Home Affordable website to get more information and details on what is required to qualify for this type of underwater refinancing.
An underwater mortgage is a very frustrating situation for any homeowner but there are assistance plans available. While some homeowners have had trouble with various Making Home Affordable programs, there are still options out there and mortgage aid plans available from different mortgage lenders.