Homeowners who may have received a home loan modification from the Home Affordable Modification Program have stated that in certain cases their mortgage payment was not reduced or it was only lowered slightly, which left them in a position where they were still struggling to meet their mortgage obligations. While there may be other causes behind such a problem, many homeowners faced this situation because they had a second lien on their home.
This was problematic simply because homeowners were still being required to meet payments on their second mortgage, which sometimes offset any benefits which may have been received from a primary home loan modification. Yet, the Second Lien Modification Program has been set in place to offer homeowners a lower monthly mortgage payment in instances where a second mortgage is present on a home.
The program is set to aid homeowners who have been offered a modification on their primary mortgage by servicers who are also participating in the Second Lien Modification Program. Some of the nation’s top servicers are modifying second mortgages, and for this reason it’s hoped that more homeowners who receive modifications may benefit down the road.
Understandably, there are homeowners who have lost their home simply because they redefaulted after receiving a modification, because they were still unable to make their mortgage payments. Some homeowners are still facing foreclosure despite having an assistance plan offered, due to factors like job loss or a severe reduction in their income, but it’s hoped that in cases where homeowners can benefit from a modification but may have a second mortgage, this program will offer affordable mortgage assistance.
While, again, the Second Lien Modification Program is hoped to bring foreclosure prevention assistance to a greater number of homeowners, there are those who still say that until factors like unemployment become less burdensome on the housing market, homeowners may still face mortgage payment difficulties even if an assistance program is offered.