There are some home prices that are still falling across the nation as homeowners continue to suffer from negative equity situations that may be resulting from foreclosures that are still being seen. However, when it comes to this devaluation problem, there are homeowners who feel that current underwater refinancing programs or principal forgiveness plans are simply not doing enough to help with the prolonged situations in our country that have led to trouble in the housing market and property values decreasing as a result.
Obviously, homeowners want more opportunities to refinance their underwater home loan for more affordability, particularly in cases where a homeowner’s mortgage payment is the issue. While programs like the Home Affordable Refinance Program are relatively well-known, some banks have been hesitant to use these programs or offer assistance to homeowners whose negative equity may be above a certain percentage of their current property value, as this could lead to losses or complications in some instances.
Yet, there were reports in July that stated some senators were looking to pass legislation that would make refinancing easier for homeowners whose property is worth less than they actually owe on their mortgage, as again there have been some homeowners who are struggling when it comes to finding opportunities for affordability on a negative equity home loan situation. This can be more frustrating though when incredibly low interest rates are currently in place and homeowners could potentially qualify for a substantially lower rate if refinancing were possible.
Every homeowner wants more affordability out of their mortgage but when a situation arises where a homeowner loses value and equity, and cannot even refinance for a more affordable rate, so that either their monthly payment costs or overall home loan costs may be reduced slightly, this has led to some growing so frustrated that they have simply walked away. Yet, there are also issues with homeowners who may be able to afford their home loan but simply feel that due to the severity of their decreased equity they should be offered some form of principal forgiveness since there were homeowners who have stated in the past that their home price may have been inflated.
While the issue of principle forgiveness is one that will likely never have a solution, as some banks may offer forgiveness options while others will not allow this route to be taken by a homeowner who can afford their mortgage payment, many homeowners who are continuing to see negative results in terms of home prices in their area have been asking for initiatives beyond the Home Affordable Refinance Program to be enacted or for new procedures to be put in place to make refinancing in a negative equity situation much easier so that homeowners may be able to take advantage of low rates that are currently available.