Homeowners who may not have seen many benefits from a traditional home loan modification may find that the Second Lien Modification Program may provide the lower monthly mortgage payment they need to gain the sustainability which is necessary for them to avoid foreclosure. Some homeowners have argued that modifications have not lowered their monthly payment to an affordable level, and in some cases, this was due to a second mortgage on their home.
There have been those who have felt that second liens, which may have prevented homeowners from receiving a lower monthly mortgage payment, are one of the causes which may have led to homeowners defaulting on their mortgage despite having a modification program in place. Programs like the Second Lien Modification Program were implemented as a way to help homeowners avoid re-defaulting on their home loan, which has been a problem for numerous homeowners across the nation.
Servicers stress the fact that these modification programs are no guarantee when it comes to keeping a homeowner in their home, since some individuals are simply in such a bad situation with their personal finances that a mortgage modification, even on a second lien, may be unhelpful.
Yet, many of the nation’s top mortgage servicers are participating in the Second Lien Modification Program, which is part of the Making Home Affordable Program, so there may be a good chance that homeowners who are given a primary home loan modification could receive a modification on their second mortgage as well. Again, this can be helpful when it comes to lowering home loan payments, but factors like unemployment do still pose a problem and may short-circuit any effectiveness these modification plans may offer.