If you find yourself stuck in a pattern
of underwater loans, or if you just want to get better at managing your debt, you can find more information online that may help.
At the same time as REITs find themselves in a strong financial position, many private owners now have to deal with banks cracking down
on underwater loans.
Yes, I know that the government is pressing to have Fannie and Freddie suck down more losses by
letting underwater loans refinance, but if you're going to do that, why not be more explicit and let the losses be realized today by resetting the loan's principal balance to 80 % of the property value, and giving the GSE a property appreciation right on any growth in the home value on sale, of say 150 % of the amount written down?
Additionally, with the government's recasting of HARP 2.0, that is the home refinance program for performing but
underwater loan, there are far fewer strategic defaults as more owners are refinancing and appreciating a lower monthly payment.
There are owners who might have been turned away in the past due to
underwater loans or credit issues.
Remember,
an underwater loan becomes a default after a negative life event — unemployment, death, disability, divorce, and uninsured disaster.
This infographic will help you get the underwater car loan picture, and offers tips on avoiding
an underwater loan in the first place but also getting your financial head back above water if needed before you drown.
Although many today are unable to move or refinance owing to
underwater loans, poor credit, and so on, some must be missing out on easy — and...
Many borrowers are refinancing out of
their underwater loans into a mortgage that bears a low fixed interest rate.
Refinance
Your Underwater Loans Regardless of LTV.
I don't have the data to support this, but I'm prone to believe the default experience of
an underwater loan that has initial equity is worse than one that did not have initial equity.
HARP 2.0 has been in place for awhile now, and although I have helped several people refinance
their underwater loans with the HARP 2.0 loan program, it has actually been a bit disappointing.
The Government - Sponsored Enterprises (GSEs) under your conservatorship own or guarantee approximately sixty percent of the outstanding residential mortgages in the United States, including nearly three million
underwater loans.