Underwater mortgages remain a problem for many homeowners as values have yet to increase for homes in certain areas or may only be slowly on the rise and others. Homeowners with an underwater mortgage have, at times, been unable to meet their monthly mortgage obligation and, as a result, underwater refinancing opportunities have been offered in some cases.
The Home Affordable Refinancing Program has been offered as an extension of the Making Home Affordable Program and has allowed certain homeowners to refinance their underwater mortgage for a more affordable payment. Homeowners whose homes are guaranteed or owned by Fannie Mae and Freddie Mac may have options when it comes to making their underwater mortgage more affordable.
Certain private lenders have offered underwater assistance plans and may make refinancing opportunities available, but many of the top mortgage servicers in our nation have been reluctant to use assistance plans like principal reductions or have been hesitant to offer underwater refinancing opportunities. While there are some exceptions, some underwater homeowners feel they may have little choice when it comes to meeting the monthly payment of their underwater mortgage.
However, an effort is set to be launched which will help homeowners who have been responsible with their monthly mortgage obligation but who also owe more on their home than their home is worth. Reportedly, September 7, 2010 will be the start date for an FHA program which will offer certain homeowners with an underwater mortgage the opportunity to refinance their home. Through this FHA program certain mortgage lenders may be able to help underwater homeowners find a more affordable payment in cases where their mortgage has lost a substantial amount of value.
It’s understandable that homeowners who are in an underwater mortgage situation are frustrated but the initiatives from the Federal Housing Administration and the Home Affordable Program are providing more opportunities for homeowners who may have difficulty meeting underwater mortgage payments. while not all homeowners may qualify, those who have a loan to value ratio amount of no more than 115% and whose first lien holder agrees to work with the homeowner to find an underwater solution may be provided assistance through this new program.