2. Refinancing Challenges
- Difficult to Refinance: Refinancing may be difficult or impossible if your home is underwater because lenders typically require that your loan-to-value (LTV) ratio meets certain criteria. Without enough equity, you may not qualify for a traditional refinance.
- Government Programs: In some cases, there may be government programs designed to help homeowners refinance even if they have negative equity, such as the now-expired Home Affordable Refinance Program (HARP). Check if there are current programs available in your area.
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