Second lien modifications which are offered as an extension of the Making Home Affordable Program may help homeowners find lower mortgage payments which will help them avoid the loss of their home. Foreclosure still remains a problem for many individuals, and there are complaints from homeowners who say that modifications have not lowered their mortgage payments to a level which is helpful when it concerns foreclosure prevention efforts.
The Second Lien Modification Program has been designed in order to make homes that have a second mortgage more affordable when a modification is issued on the primary home loan. In some cases over the past months homeowners who have received a home loan modification on their primary mortgage did not receive assistance or lower payments on their second lien, which did little to help them with their payments.
Obviously, when a second mortgage is not modified, a primary mortgage modification may be negated or unhelpful and, as a result, homeowners in need of lower mortgage payments are simply unaided. Yet, it’s hoped that servicers who offer primary modifications will be able to aid more homeowners through these second lien modification plans as well and, for the most part, increase the number of homes which avoid foreclosure.
According to the Making Home Affordable Program, homeowners who are successfully granted a Home Affordable Modification Program modification on their first lien will be offered, from their servicer, the opportunity to modify their second lien as well. Again, this is hoped to cut down on the number of homeowners who still default despite having a modification program in place due to the fact that a second lien on their home is still causing their monthly mortgage payment costs to be unmanageable for their situation.