Homeowners who may have a second lien on their home, as a result of a home equity loan for example, are in a position where they have had to meet payments on not only a primary home loan but a secondary mortgage as well, and when financial troubles have arisen in the lives of these individuals, difficulties have been present when it comes to meeting this second obligation. However, homeowners who are facing problems with their mortgage payment on their second lien may have opportunities still remaining this month for relief and help when it comes to avoiding defaults on their second home loan.
There have been reports released in May that state last month saw an increase in the number of defaults on second home loans, which was been a change in the trend that was seen over the past months. In essence, homeowners who have a second mortgage saw their default rate rise in the month of April, and this has led some homeowners to question whether there are opportunities for second lien assistance or simply opportunities to decrease the overall amount that a homeowner must pay on their mortgage.
Some homeowners have been in a situation where, despite having a second lien on their home loan present, they have been able to find affordability to such an extent on their primary home loan that they can now more easily make their payment on their second lien. Yet, homeowners do also find themselves in a situation where after a primary home loan modification, as an example, the need for second lien is also vital in order to help these men and women avoid further financial distress or potential foreclosure.
Many homeowners are aware of the federal modification program, and there are also modification plans available directly from most major mortgage servicers, but there may still be those men and women who are unsure of what help is available in terms of dealing with their second mortgage, but the Second Lien Modification Program has been set in place for this particular concern. Homeowners who qualify for a primary home loan modification may request that their servicer consider them for a second lien modification plan, as there are, once again, homeowners who simply cannot afford both a primary and secondary home loan payment.
While there are some options that homeowners may have in specific states to help them deal with these home loan payment issues, and homeowners may want to contact their state’s housing agency to inquire about these plans, many have simply talked with their primary servicer about options that could be available for a second lien home loan modification, but in some cases where a homeowner may have a second lien with another financial institution, this could be more complicated when it comes to finding affordability. However, homeowners should not resign themselves to simply missing payments or defaulting on their second lien, as those who are positioned to take advantage of and benefit from a primary modification may also have this opportunity on their second home loan that will allow them to keep their home despite having financial setbacks that are currently present.