Choose Best Refinancing Programs for Underwater Mortgages Online

Refinancing an underwater mortgage can be a cumbersome task considering the subtleties involved in the process. For reducing the overall rigors of the procedure as well as save valuable time and money, it could be better if you consult and work with a competent mortgage expert in your local area.

Determine If Options for Underwater Mortgage Is the Right for You

Prior to exploring various refinance options for underwater mortgages online, it could be advisable for you to check whether your existing mortgage is actually underwater or not. If it indeed is then be prepared for the onerous job of refinancing.

Explore Various Refinancing Options for Underwater Mortgage Online Now

To refinance underwater mortgage with the HARP 2.0 can be a difficult proposition since, most of the lenders that are active participants in the HARP program want homeowners to have at least 20% equity in their homes. Hence, even if your house has lost all value and is worth less than the loan dues, this condition has to be strictly met.

  • Step 1 - HARP - Currently, there are no LTV restrictions on home mortgages which are deeply underwater. But if a homeowner has been delinquent on your monthly mortgage payments more than once during the past 12 months, you automatically disqualify for the HARP plan. Another major condition is that the mortgage loan under consideration must be insured by either Fannie Mae or Freddie Mac.
  • Step 2 - HAMP - If a homeowner has a underwater mortgage as well as has missed few monthly payments then he can apply for a loan modification under the HAMP scheme. To improve chances of getting approved for the HAMP plan, borrower must have a Fannie Mae or Freddie Mac owned mortgage and must be able to prove financial hardships to his mortgage lender.

Refinancing Underwater Mortgage : 5 Different Methods to Explained

  • If you have two mortgages then first pay off the primary home loan and let the second mortgage remain in a subrogated position. If the mortgages have been secured from 2 different lenders, ask the second home loan dealers if any financial help can be received for refinancing first mortgage.
  • You can think of getting underwater refinance in the form of a home mortgage loan modification by qualifying for the HAMP plan for getting rid of first high interest home loan. Additionally, under the HAMP, it may be also possible to modify 2nd lien under the second lien modification program.
  • If your mortgage is owned by Fannie Mae or Freddie Mac and LTV ratio is 80% then you can take advantage of the HARP plan provided you have been current on monthly mortgage payments for the last 12 months. In addition, you must not have missed more than one payment during the last 6 months.
  • Determine eligibility to get underwater mortgage refinance loan approval for settling your home mortgage debts full and final by contacting your state’s attorney general office on website to get proper mortgage settlement information. Also check if your mortgage loans lenders are active participants in the Home Affordable Refinance Program HARP.
  • If your first and second mortgages are insured by FHA and the combined value of these loans is less than 15% of your house value then you can consider applying for the FHA short refi program for lowering interest rate and monthly payments. But you need to meet FHA guidelines.

Learn How to Refinance Underwater Mortgage with Specialist Help Online

How to Refinance Your Mortgage If You Are Underwater, Get Free Quotes to Know About More Options!

Underwater Mortgage Refinance

Steps for Refinancing Underwater Mortgage under the HARP Plan

By qualifying for the Home Affordable Refinance Program HARP, it could be possible to get access to significantly lower interest rates and thus, make monthly mortgage payments more affordable. But the HARP does not reduce amount of loan dues in any way, for that you may have to look to some other principal mortgage loan reduction program. In any case, to improve chances of securing a HARP approval, you might have to:

  • Determine eligibility for HARP home refinance program
  • Make sure that you have Fannie Mae or Freddie Mac mortgage

If you are not HARP eligible then you can request a home loan modification under the HAMP to your lender.