Homeowners who are current on their mortgage payment but are in an underwater situation had hoped that, over a year ago, a new FHA underwater refinance plan would help with finding more affordability in terms of opportunities to get a lower rate on these home loans, but we have recently seen that homeowners who are struggling with negative equity and in specific situations are not finding the options they had originally hoped would arise as a response to housing troubles. Many are still waiting on proposals for either changes in current programs or new initiatives to help the negative equity situation that many homeowners are facing, but homeowners are still questioning whether there are options that remain for those in an underwater home loan.
Those who are facing financial troubles, meaning they cannot pay for their home loan, may have opportunities through the Home Affordable Refinance Program, but some homeowners are not simply looking for mortgage payment assistance when negative equity and other issues arise, yet some are in a position where they want to take advantage of record low mortgage interest rates that are currently available. Since the FHA underwater assistance plan and certain proprietary programs made available directly from mortgage servicers have not been able to help homeowners in all situations, it’s understandable that there remains a great deal of frustration for those who are paying more on their home than it’s worth.
Some homeowners had hoped that their service or would provide solutions but again, in the area of principal reductions and refinancing opportunities, homeowners have not been seeing a great deal of success, particularly in cases where they can meet their mortgage payment, as many servicers and investors are unwilling to forgive a homeowner’s principle or allow them to refinance when they can pay their home loan despite being under water. It’s because of these roadblocks that some homeowners have faced that there are still problems with homeowners walking away from their mortgage, but as the situation in the housing market does seem to be a point where foreclosures must be stopped and strategic defaults prevented, it’s hoped that solutions for these individuals will soon arrive.
While there have been some limited cases of the FHA assistance program helping homeowners refinance, there is a wide consensus that more needs to be done not only if this particular program is to help but more opportunities must become available for homeowners in general, even if there are simple changes to current plans rather than new programs. Homeowners are being reminded that some state programs may help with negative equity or mortgage payment troubles, certain federal programs offer principal reductions and refinancing in specific situations, but frustrated homeowners are still seeking solutions as these current plans have not been able to cast a wide enough net as to help the maximum number of homeowners struggling with negative equity.