The Making Home Affordable Second Lien Modification Program is an initiative to help homeowners who have a second mortgage and are trying to obtain an affordable home loan payment. Many homeowners whose primary mortgage is modified often have trouble making their monthly mortgage payments due to the fact that a second lien on their home is still causing their mortgage payment to be unmanageable for their financial situation.
The second lien modification program is set to help homeowners by reducing their interest rate on their second lien if their primary mortgage has been modified through the home loan modification program. Many homeowners have re-defaulted on their home loan even after entering into a modification trial period due to the fact that their second mortgage holder did not modify their home loan to an affordable rate, or at all.
Obviously, the home loan modification program is set in place to help homeowners get a more affordable home loan payment and when a second lien is involved it typically negates any assistance that was given by a modification on a primary home loan. Again, this Second Lien Modification Program can help homeowners by either reducing their interest rate or extending the term of their second lien so that a homeowner is able to make their home loan payment.
Homeowners have had trouble in the modification program as there have been problems like those with a second mortgage that have caused homeowners to either struggle to make their modification payments or simply not qualify for a modification. However, there are those lenders who are working with homeowners who want to avoid foreclosure by either offering these types of mortgage assistance plans through the Obama’s Making Home Affordable Program or who are offering foreclosure alternative options.
Homeowners are often advised to consult the Making Home Affordable website or talk with their lender about options if they’re having trouble making their mortgage payment. Again, there are various programs that have been created to help homeowners who are suffering from troubles stemming from unemployment, principal reductions, or a second lien, just to name a few. While not all homeowners will get the mortgage assistance they need, there is more being done to help those who do qualify or are in a position to benefit from mortgage assistance.