The home loan modification program has drawn criticism from many sources and lenders like Bank of America have come under fire from homeowners for not doing enough to make modifications permanent or at all. Homeowners whose mortgage is underwater have little option other than to get a home loan modification to avoid foreclosure, so it’s understandable when people are frustrated with lenders.
However, a problem that has caused Bank of America, and other lenders, trouble in the home loan modification program, through the Obama Administration’s Making Home Affordable Program, is second liens. Homeowners who have taken out a second lien against their house and saw the value of their home drop are causing modifications to be more difficult for lenders to make.
The modification on a primary mortgage is available, but lenders like Bank of America have been unable to modify second mortgages, which is why many homeowners are unable to still pay their monthly mortgage payment. A second lien program has been in place from the Obama Administration, but has done little to help homeowners.
Bank of America is one of the only banks that have signed on to the governmental second lien program, although other banks like Citigroup say they have in-house programs of their own to deal with second lien mortgages.
If you are a homeowner struggling with your mortgage payment or mortgage modification and have a second lien, you may want to talk to your lender or other lenders who may offer you help on your second lien modification.
