Many homeowners have had trouble obtaining some form of assistance that will allow them to either avoid foreclosure or make their home loan modification more affordable by modifying their second mortgage. Many homeowners with a second mortgage on their home were unable to benefit from a primary modification since monthly mortgage payments were still too costly. Also, homeowners who have run out of options when it comes to getting a more affordable home loan payment have asked that alternatives to foreclosure be offered.
For these reasons, among others, the Making Home Affordable Program has instituted extension programs to aid and assist homeowners who are in certain predicaments when it comes to their home loan. The Home Affordable Foreclosure Alternatives plan and the Second Lien Modification Program were introduced and many of the nation’s top mortgage servicers have been offering assistance for homeowners who are in need of help from these particular plans.
For instance, in the Home Affordable Foreclosure Alternatives program lenders like Bank of America, J.P. Morgan Chase, Wells Fargo, and American Home Mortgage Servicing are operationally ready and offering these plans to homeowners. It’s also reported in the June Making Home Affordable servicer progress report that Citigroup and GMAC Mortgage have been able to extend offers in the program since June of 2010.
As for the Second Lien Modification Program there is also good news for certain homeowners who are struggling with a second mortgage on their home but are in need of modification assistance. Bank of America and J.P. Morgan Chase, according to the Making Home Affordable report, are ready to implement this program and have been offering homeowners assistance for a few months. Also, Citigroup will be able to extend his plan to homeowners by October 2010 and Wells Fargo has been ready and able to implement this program as of July 2010.
It’s hoped that extensions of the Making Home Affordable Program, like the foreclosure alternatives and second lien plans, will help homeowners either obtain a more affordable home loan or avoid the foreclosure process if they can no longer make their home loan payment. Homeowners are being advised to talk over options with their lender if they are having particular problems in relation to a second mortgage or if foreclosure seems inevitable and a homeowner is willing to enter into a deed in lieu of foreclosure or short sale plan. While not all homeowners may qualify for these assistance programs, it’s hoped that in cases where a modification is of no use, one of these mortgage aid plans will be helpful to homeowners.