Underwater mortgages have become a very difficult problem for many homeowners who have seen their home’s value drop significantly over the past months. Homeowners are growing so frustrated with the situation that many are just walking away from their home in what is being termed a “strategic default”.
However, many homeowners have been asking about principal reductions for homes that have lost a substantial amount of value. Many homeowners across the nation have seen their house decrease in value from it’s purchase price and worry that they will be unable to either pay off their home loan or sell their house for a profit in the future.
Some lenders have been hesitant to use principal reductions when helping homeowners with an underwater mortgage, but there are some mortgage lenders who will help homeowners with this form mortgage aid. However, there are still many struggling homeowners that are angry they are not able to get a principal reduction on their home loan.
There are other assistance options available for individuals with an underwater mortgage, but not all lenders are using each of these assistance programs from the Making Home Affordable Program nor are all homeowners who are in need of some form of underwater mortgage assistance getting help.
Yet, homeowners with an underwater mortgage may be able to, for instance, short sell their home or take advantage of underwater refinancing opportunities from certain lenders. Basically, homeowners who have an underwater mortgage and are finding it difficult to make their home loan payment as a result may be able to get more help on their mortgage than homeowners who simply want a cheaper principal amount so that their home may be sold for profit in the future.