Underwater principal reduction and underwater refinancing opportunities have been sought out by numerous homeowners who have seen a decrease in their home’s value over the past months. While there have been opportunities for homeowners to lower their underwater mortgage interest rate, and as a result, get lower payments on their home loan, some homeowners have been unable to find the underwater mortgage assistance plans they need.
In some cases where negative equity has caused a great deal of trouble for a homeowner, the loss of the home has been inevitable. However, some homeowners have turned to short sell options as a way to avoid the foreclosure process and the subsequent damage which will be done to their credit score as a result.
While the loss of one’s home can be quite traumatic and difficult to overcome, short sale opportunities may allow homeowners to not only get out from under their underwater mortgage debt obligation in a timely manner and to avoid foreclosure, but foreclosure alternative options like short sales may also help homeowners get their financial life back in order sooner.
Obviously, a homeowner who loses their home may not be in a financial position to reenter the housing market quickly, but in cases where a homeowner has suffered from an underwater mortgage and uses a short sale option, a credit score or credit history may take less of a hit and offer homeowners the opportunity to find other mortgage opportunities faster than if a homeowner simply defaulted.
Understandably, underwater assistance programs like principal reductions and refinancing are preferable for homeowners who need affordable mortgage payment solutions on their underwater mortgage, but in cases where these plans are not available, short sales have benefited homeowners over the past months. While a short sale requires a lender and homeowner to work together, and there have been difficulties in some cases, more homeowners may find underwater mortgage relief from short sale opportunities if saving their home is not an option.