Homeowners who have seen the value decrease in their home over the past months have, in many cases, grown so frustrated that they simply walked away from their home or now face losing their home altogether due to their inability to pay the costs of their monthly home loan obligation. Despite the fact that interest rates have been quite low over the past months and many homeowners have been able to refinance to a much lower home loan payment and interest rate, underwater homeowners have not been afforded this opportunity and have struggled just to keep their home.
However, underwater mortgage refinancing opportunities from the Obama Administration may afford these homeowners, who have seen the value of their home drop, the ability to obtain a more affordable home loan payment. While many homeowners have asked for principal reductions, there are many lenders who believe that reducing a principal amount on a home loan is not a solution that should be used on a wide scale. Obviously, these financial institutions are looking out for their interests by being hesitant to offer principal reductions and many homeowners who are in good standing believe that reducing a homeowner’s principle is unfair since there is no guarantee that a home’s value must increase.
There is the problem still of homeowners being unable to afford their home loan payment if the value of their home decreases. While the debate over principal reductions is something on which many will not see eye to eye, homeowners who may qualify for the Home Affordable Refinance Program can benefit from this opportunity by obtaining a more affordable home loan payment.
Programs like short sales are available to many homeowners who simply want to be free and clear of their underwater mortgage debt, but this is not the case for many underwater homeowners as some simply want to keep a roof over their head. The Home Affordable Refinance Program is available to homeowners who have their home loan guaranteed by Fannie Mae or Freddie Mac and they may have been denied mortgage assistance or are simply struggling to pay their home loan payments from month-to-month.
Homeowners can contact a mortgage servicer about opportunities for their underwater mortgage debt situation and to see if they qualify for underwater refinancing. While not all homeowners may be able to obtain this type of underwater refinancing help, many lenders are offering alternative assistance plans or foreclosure prevention options to homeowners that may be struggling with an underwater mortgage or who simply cannot afford their home any longer.