Help for homeowners who have a second home loan and are attempting to overcome financial difficulties here in May can be made available if a homeowner qualifies for programs like the Second Lien Modification initiative that is part of the making home affordable program, due to the fact that some homeowners are still having problems when they get a modification on their primary home loan, but are still meeting payments on a second mortgage. Obviously, some homeowners who may have taken a home equity loan out, as an example, but because of economic downturns, unemployment, or other financial factors that led to distress in their personal lives are in a position where they may lose their home if they cannot meet these obligations.
Understandably, not all homeowners may qualify for mortgage assistance on their second home loan, but there are some who may be in a position that, due to no fault of their own, are having trouble making their mortgage payments and second lien payment, yet may avoid foreclosure if some form of assistance is given. Essentially, the Second Lien Modification Program offers help to homeowners if their first mortgage was modified under the Making Home Affordable Program, as well as, if homeowners meet other qualifications like owing more than $5000 on the second mortgage and if they have a second mortgage payment of more than $100. Also, homeowners must be in a position where they are making primary home modification payments, as those who may have missed payments within their HAMP modification may be disqualified from this form of assistance.
While major lenders like Bank of America, Chase, Wells Fargo, and many others are participating in this Second Lien Modification Program, homeowners need to understand that there is no guarantee when it comes to avoiding the loss of their home through these initiatives, as not every homeowner has been able to qualify or get help from some form of foreclosure prevention aid. However, there are some states that are offering home loan foreclosure prevention assistance like those working within the Hardest Hit Fund Program, and in some instances homeowners may get assistance on the totality of their mortgage payment, but again, this could differ from one state to another so homeowners must check with their state housing agency as to whether these programs are available and will help with their second lien.
Yet, homeowners who are facing financial troubles are being prompted to address these issues quickly by speaking with the servicer or housing counselor, as exploring viable options for a homeowner’s particular situation will be necessary to see what program or combination of programs may be helpful, but this may take time and, if setbacks are present, homeowners will need to make sure they are in a decent financial position rather than facing the imminent loss of their home before attempting to find help.