Modification plans from federal programs to state level assistance initiatives are being used to assist homeowners with the affordability and sustainability of their home loan requirements. However, there are other extension plans, like the Second Lien Modification Program, which may address homeowner needs in situations where a second mortgage modification is required.
Homeowners who have a second mortgage have often been unable to pay their home loan payment even when a primary modification was set in place. Obviously, numerous economic troubles have plagued homeowners over the past months which has necessitated these numerous foreclosure prevention and modification efforts to be offered not only from federal and state levels, but directly from mortgage servicers as well.
Yet, homeowners who were unassisted by a primary home loan modification were usually in a situation where a second lien on their home was present and not modified. However, homeowners have been prompted to address this concern with their servicer, and as a result, homeowners who do have a second mortgage but are granted a primary home loan modification will be able to reduce the requirement on their second lien, and it is hoped this will bring more overall affordability to a homeowner’s monthly obligation.
Individuals who are struggling in areas of their personal financial life and fear that missing payments on their mortgage will be inevitable are not always in a position where a second mortgage is the problem, so homeowners may need to explore alternative opportunities for mortgage payment affordability.
However, homeowners who have been struggling to stay afloat in situations where both a primary and secondary lien are present, do have expanded options as many of the nation’s top mortgage servicers, like Bank of America, Chase, Citigroup, and Wells Fargo are reportedly using second lien assistance plans for homeowners in need. While these secondary modifications are no guarantee when it comes to foreclosure prevention, like traditional modifications on primary loans, homeowners may still need to begin working with their servicer or a HUD-approved housing counselor as soon as financial difficulties arise.