Some homeowners who have gained assistance from the Making Home Affordable modification program often have found that they are still in a situation where meeting their monthly mortgage payment is difficult due to various costs. There have been homeowners who stated that meeting monthly payments within a modification plan are still too expensive, and this has usually been traced to the fact that a second mortgage may be present on their home loan.
Yet, the Second Lien Modification Program was set in place as a way to address this issue which many homeowners are facing. Under the guidelines set forth by the Making Home Affordable Program, homeowners who have their first lien modified through the modification program will be offered, by their servicer, the opportunity to modify their second lien. Obviously, homeowners who are suffering from payments related to their second mortgage will benefit from this option similarly to a primary home loan modification, which when used together, can lower the overall home loan costs which a homeowner must meet month-to-month.
Also, homeowners who qualify for the Second Lien Modification Program may qualify for a principal reduction of up to $1,250, which equates to $250 per year for five years. These outlines, which again are set forth by the Making Home Affordable Program, are used by many of the major mortgage servicers who are working with homeowners to provide foreclosure prevention assistance during these difficult economic times which homeowners are facing, so finding a servicer who participates in the Second Modification Program has not been difficult for homeowners, as countless financial institutions are participating in the federal modification plan as well.
However, programs like the Second Lien Modification initiative are not guaranteed to prevent foreclosure for homeowners who are suffering from factors like unemployment or other financial troubles. While many of these foreclosure prevention efforts do offer lower monthly payments on home loans, there are still homeowners who are defaulting and facing foreclosure as a result. Yet, homeowners are still being encouraged to contact their mortgage servicer or consult resources like the Making Home Affordable website as a way to gain information about modification opportunities or simply begin the process of a home loan modification with their primary mortgage servicer.
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