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Nov 09
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Mortgage statistics show roughly 11 million U.S. homeowners — about 23 percent of Americans with a mortgage — are underwater. What this means is the owners owe more on the mortgage than the home is worth.
How Underwater home owners Can Get Help
Some underwater homeowners with government-backed mortgages might be able to refinance through federal programs, such as the Home Affordable Refinance Program.
Conditions For Refinancing Underwater Mortgages
- If your loan is owned by Fannie or Freddie, you may qualify for the Home Affordable Refinance Program.
- Underwater mortgage finance is limited to those who have lost no more than 10 percent of their home’s equity.
- Underwater homeowners must also have not been late on their payments more than once in the last 12 months
It’s tough to refinance a loan these days, but don’t be disheartened. If your home is already underwater you have nothing to lose by talking to your lender. After all, talk is cheap!