Homeowners who may have mortgage trouble in certain areas related to unemployment or depreciation in their home’s value, may be able to take advantage of certain extension plans from the Making Home Affordable Program. Opportunities like the Home Affordable Unemployment Program and the Principal Reduction Alternative Program have been proposed to aid homeowners in situations where traditional modifications may not be helpful.
Underwater mortgage refinancing plans have been used by homeowners, through plans like the FHA short refinance program and the Home Affordable Refinance Program, have aided some underwater homeowners but there are those in need of simple solutions like a principal reduction. Homeowners who may have an adjustable-rate mortgage may need refinancing options for affordability on their home, but there are also arguments to be made for principal reductions.
Since many programs that offer principal reductions say these forgiveness plans must come at the discretion of the mortgage servicer, there are those who feel principal forgiveness may be unattainable since servicers are unwilling to drop principal amounts in most cases.
Yet, extension programs are not limited to homeowners with an underwater mortgage, as plans for unemployed homeowners may also be available for certain individuals too. Homeowners who have difficulty paying their mortgage due to unemployment may qualify for a forbearance on their home loan through plans like the Home Affordable Unemployment Program.
These extension plans from the Making Home Affordable Program and the FHA may be helpful to certain homeowners, but there are also state-specific plans which may offer similar programs to troubled homeowners. Factors like unemployment and underwater mortgages remain a major problem for homeowners and the housing market but homeowners do have options in these areas when it comes to finding a more affordable mortgage payment and avoiding the loss of their home.