Modification programs have had both ups and downs when it comes to offering more affordability for homeowners who are struggling to make their mortgage payment, as there have been some traditional modifications that have prevented the loss of a homeowner’s property while others have complained that they are still facing financial strains that were not corrected through a traditional home loan modification program. Yet, one of the problems that many homeowners have had concerning modifications is the presence of a second home loan which, despite having a primary home loan modification, has failed to offer the affordability that some homeowners need to avoid the loss of their home.
While there are different extension programs within the Making Home Affordable Program, the second lien modification program has been implemented as a way to modify a homeowner’s second mortgage and bring more affordable options when it comes to making their mortgage payment. Obviously, homeowners who may have two mortgages on which they are paying will not benefit if only a primary home loan is modified, as there have been homeowners who were documented in the past that still missed payments on their home loan despite having a primary modification and the reason behind this problem was the homeowner’s second mortgage.
Understandably, a home loan modification has not been a guaranteed fix for every homeowner who is struggling to make their mortgage payment but it’s felt that second lien modification options can offer more affordability that homeowners need so they can avoid the loss of their home due to missed payments that result when the overall mortgage payment obligations a homeowner must face are simply too high. There are numerous homeowners in a position where they had previously been able to meet their mortgage obligations without much difficulty, but obviously, economic factors like unemployment have created situations across the nation where homeowners simply need help or else they will lose their home.
There are mixed results that have been seen in the federal modification program and second lien modifications are not the only extension plans to be offered outside of traditional home modifications. While there have been homeowners who have been helped through the Home Affordable Unemployment Program, the Home Affordable for Refinance Program, and short sale or deed in lieu of foreclosure programs, those simply in need of more affordability on their mortgage through modification may benefit from both primary and secondary modifications on their home loan as well. Homeowners who qualify for a primary home loan modification plan are supposed to be offered a second lien modification as well, but if a second mortgage is still causing trouble for a homeowner they may want to request this option with their servicer or talk over what plans may be available to help them if a second mortgage is causing difficulty and they are unable to meet their overall monthly mortgage payments.