Homeowners who are troubled with an underwater mortgage may be able to refinance their underwater home loan and obtain a more affordable payment. Many homeowners have been distressed and struggling with the fact that they owe more on their home than their home is actually worth, but the situation has been made worse in cases where homeowners cannot afford their home loan payment due to the fact that it has lost so much value.
For this reason, there have been underwater refinancing opportunities made available from mortgage lenders to help homeowners in this bad situation. Also, the Home Affordable Refinance Program was set in place by the Obama Administration in order to help homeowners refinance their underwater mortgage and avoid foreclosure. While many homeowners requested principal reductions on their home loan, mortgage lenders felt that reducing principal amounts was not practice that was beneficial on a wide scale when making home loan payments more affordable.
Yet, the Home Affordable Refinance Program has allowed homeowners who have a home loan that is either owned or guaranteed by Fannie Mae or Freddie Mac to refinance their home loan and obtain a more affordable mortgage. While traditional refinancing has helped many homeowners obtain a lower mortgage interest rate and home loan payment, homeowners who are underwater had to, in some cases, pay money in if they were to refinance or were unable to refinance entirely.
However, programs like the Home Affordable Refinance Program has helped homeowners who are facing a situation that had caused many to grow so frustrated that they walked away from their home loan obligation. While options like short sales are also available to homeowners in an underwater mortgage situation, those who want to keep a roof over their head may be able to benefit from these underwater refinancing options and obtain a home loan payment that will allow them to avoid the loss of their home.
Homeowners can consult the Making Home Affordable website if they have questions about qualifying for the Obama underwater mortgage refinancing program, concerns over if their home is owned or guaranteed by Fannie Mae or Freddie Mac or if they have questions on applying to refinance under this program. Typically, homeowners must contact their lender and work directly with Fannie Mae or Freddie Mac, or work with an approved lender in order to begin the Home Affordable Refinance process.