There have been continual calls on the part of homeowners for more refinancing options when negative equity is in place as homeowners who may be current on their mortgage payments are also suffering from the inability to refinance their home loan as devaluation is not simply a problem that homeowners who are having trouble making their mortgage payments are seeing but it impacts numerous homeowners who may be in a decent financial position but cannot take advantage of low home loan rates that are currently available. Understandably, it’s hoped that new programs or changes to the current Home Affordable Refinance Program will be made soon, homeowners are remaining in a frustrating situation as rates on refinancing options remain low and some feel that this opportunity for affordability is passing them by.
What many homeowners have had trouble with is the qualifications that must be met by certain homeowners to take advantage of federal refinancing programs, due to the fact that certain restrictions have made it difficult for homeowners with certain types of mortgages or who are not behind on their mortgage payments to qualify for these financing opportunities. There are still homeowners who want negative equity assistance to go even further than refinancing and offer more principal reduction plans, but some homeowners are simply looking for help when it comes to getting a lower mortgage payment via a smaller rate on their home loan.
In some cases there are opportunities for homeowners to get either a principal reduction on their home loan or, as part of the calculations made by a mortgage servicer, homeowners may be granted a temporary principal forgiveness option, which allows the homeowner’s mortgage assistance plan to be calculated at a lower cost but the amount of principle that a homeowner may be forgiven will likely be tacked onto the end of their loan. Obviously, this will not benefit all homeowners as of some are simply looking for more overall affordability on their home loan rather than simply getting help with making their payments at the present time.
Over the past weeks we have seen proposals and calls by homeowners and officials to offer solutions when it concerns these underwater refinancing options, but for homeowners who are current on their mortgage payments there have been fewer options available. In some cases, homeowners who can’t pay their mortgage but are paying on a home loan that is worth more than their property value are frustrated yet, if changes are made to help these homeowners, it may be more helpful if they know that refinancing is available and, as a result of a rate reduction, they will be paying less in the long run.
There are no simple solutions when it comes to negative equity issues or underwater refinancing, but as more officials and homeowners are asking that this problem be addressed, we hope to see changes in current plans or new solutions offered in the near future for both homeowners who are having underwater mortgage payment problems and those who are able to pay their home loan that are still facing negative equity.