Many homeowners who have attempted to get a home loan modification in order to lower monthly mortgage payments have been met with difficulty due to problems like second liens. However, the Second Lien Modification Program was created to address this issue on homes where a second mortgage was in place and perhaps hindering the effectiveness of a home loan modification on primary mortgage.
The nation’s top four mortgage servicers, Bank of America, J.P. Morgan Chase, Citigroup, and Wells Fargo are reported to have begun working with homeowners to modify second mortgages, but other servicers are said to be in the process of making strides in this area as there is a call for all servicers began making modifications on second liens by January of 2011.
Some homeowners have been disheartened when they were granted a modification on their mortgage but were unable to afford their mortgage payments thanks to a second mortgage. It’s been said that similar terms on primary modifications will be used on second lien modifications, and homeowners may have to successfully complete a second lien modification trial period, as is the case with primary modifications.
It’s hoped that this second lien modification program will be more beneficial in helping homeowners find more long-term solutions to their mortgage troubles. Sustainable mortgage assistance through affordable payments have helped many homeowners keep their home and avoid foreclosure during these difficult financial times, but again, factors like second liens had been trouble for many.
While, again, some of the nation’s top lenders are reported to have been using the second lien modification plans, Fannie Mae will be requiring that all home loan servicers implement this plan by the first of the year in 2011. While some say that this is going to be unhelpful to homeowners at the present time, it’s hoped that more homeowners can find sustainable mortgage payments over the long run thanks to initiatives like this second lien modification plan.