Homeowners have been struggling with an underwater mortgage over the past months as home values have decreased in some areas across the nation. Sadly, homeowners have, in some cases, been unable to meet their monthly mortgage payment when they lost value in their home and reached a point where they owed more on their home than their home is actually worth.
Yet, underwater refinancing programs were created in the hopes of assisting homeowners with underwater mortgage troubles find some form of debt relief through refinancing opportunities. Despite the fact that mortgage interest rates have stayed quite low over the past months, homeowners with an underwater mortgage have simply been unable to refinance to a more affordable home loan through traditional means.
However, refinancing opportunities through the Home Affordable Refinance Program and the FHA short refinancing program have been created in order to help homeowners find underwater mortgage solutions. Homeowners who have a home loan that is guaranteed or owned by Fannie Mae or Freddie Mac may be able to take advantage of the Home Affordable Refinance Program, and as a result, refinance their mortgage to a more affordable rate with the possibility of a lower monthly mortgage payment as well.
The FHA short refinance program has been implemented as a way to allow homeowners to not only receive refinancing opportunities but a principle reduction as well. Homeowners who may qualify for this program will have their mortgage servicers lower their mortgage principle and can then refinance for an FHA-insured home loan.
While these underwater refinancing opportunities may bring more affordable mortgage payments, not everyone has been able to take advantage but it is believed that more homeowners may be able to avoid foreclosure or troubles associated with underwater homeowners through these refinancing plans.