Options For People in Underwater Mortgages

There are numerous questions regarding "underwater"loan. The process is generally quick & easy thanks to
mortgages, or people who currently owe more thanthe limited documentation and credit qualifying
their home is worth. Here is Quicken Loans' expertrequirements, getting homeowners the relief they need
response on this topic.sooner.
Like so many others, I owe more than my home is•Loan Modification - Depending on how far you are
worth, and even paying large monthly payments, theunderwater, you could qualify for the government's
balance does not descend that much. At this rate I'll beMaking Home Affordable program. There are two
paying this house off 'til I'm 158 - in 100 years. I'm tooparts to this program. The first is a streamlined
old to start over again with a refi of 30 years; I couldrefinance program from Fannie Mae for borrowers
use a "reconstruct." Because my credit is not pristine,who owe more on their mortgage than their home is
the rates I can get are too high to help. Even theworth. If you're on time with your payments, you can
thought of selling in my home town with the balanceget help with the refinance plus program. The other
owed and the improvements needed is ludicrous. Ideasoption available is a loan modification from the
from an expert? Thanks!government. This option is currently available to
It's disheartening to hear from Americans who areborrowers who can demonstrate that they are at risk
doing everything right and still struggle to find relief.of defaulting.
Without knowing all the specifics on this particular•Homeownership Preservation - There are several
situation, we can offer the following tips:additional options designed to help homeowners
•FHA Streamline Refinance - People with an FHAprotect the personal and financial investment they've
loan can refinance using a program called the FHAmade in their home. These include Repayment Plans,
Streamline. This program can help people in an FHAForbearance Plans, Modifications or even assistance
loan who owe more than their home is worth thanksselling your home.
to the no appraisal option. People who are underwaterHopefully one of these options can help our reader
can still refinance into an FHA loan with a lower rate -and the many other Americans who are in a similar
and they can choose either a 15-year or 30-year fixedsituation. Help is out there.