Underwater home loan assistance is something that has been sought out by many homeowners who have seen their home’s value drop over the past months. It’s quite understandable that a homeowner who owes more on their home than their home is actually worth is in a frustrating situation, but there have been instances where mortgage servicers are unwilling to offer underwater refinancing or principle reduction options for these individuals.
Yet, plans implemented by the FHA and the Home Affordable Refinance Program have offered some underwater homeowners the opportunity to gain a more affordable monthly mortgage payment despite owing more on their home than it’s actually worth. These options have helped some homeowners who have grown frustrated with their situation and may have considered walking away from their mortgage, which has become a problem in some areas.
It’s hoped that homeowners who are able to refinance their home under the Home Affordable Refinance Program or those who are able to refinance and be granted a principal reduction under the FHA short refinance program will not only find the affordability they need for their monthly mortgage payments, but also remain in their home despite being in a bad mortgage predicament.
While there are those who doubt these programs will see a wide range of success, especially in the case of the FHA short refinance program which will require mortgage servicers to offer a principal reduction, many homeowners feel that these opportunities to simply make their mortgage more affordable will be greatly beneficial overall. Some homeowners with an underwater mortgage have attempted to find an affordable home loan payment solution through modifications, but in cases where modifications are unavailable, these underwater refinancing programs are offered to certain homeowners who may be facing the loss of their home or may be in danger of defaulting on their payments.