Underwater mortgage refinancing opportunities may allow homeowners who have seen their home’s value drop obtain a more affordable payment on their mortgage. Home loan repayments for homeowners who have an underwater mortgage have become difficult in some cases so certain refinancing opportunities have been made available or are set to be begin in the near future.
For some, the Home Affordable Refinancing Program may help them obtain a more affordable underwater home loan payment thanks to the Obama Administration’s Making Home Affordable Program. The Refinancing Program, which is an extension of the Home Affordable Program, may help homeowners by allowing them to refinance their underwater mortgage to take advantage of a lower mortgage rate.
There are also programs that are set to be launched in the near future from other sources like the FHA, which may help underwater homeowners refinance their loan and have a portion of their mortgage principal forgiven. Mortgage principal reductions are something that many underwater homeowners have asked for but there have been mixed results from servicers as not all banks are willing to offer principal forgiveness.
As the housing market struggles in a variety of ways more homeowners who are underwater are looking for solutions. While there are short sale options available to some, homeowners who want to keep a roof over their head are only asking for an affordable underwater home loan payment. Not every mortgage servicer has been helpful in areas where homeowners are struggling financially, but there are new programs that may help homeowners with an underwater mortgage make their home loan payment more affordable and keep their home despite having seen its value decrease.