According to reports released in the early part of June, homeowners saw an increase in the number of second lien modifications that had been started through the federal Making Home Affordable Program, and this has allowed for more affordability being made available to certain homeowners who may qualify for a primary home loan modification but not reap the benefits in terms of a more affordable monthly mortgage payment obligation. Homeowners who do typically seek out a modification on their second mortgage are those who have found that foreclosure may be imminent if they are not able to reduce the amount they owe on obligations which stem from borrowing options like home equity loans, as an example.
Yet, all second lien modifications that have been started, according to Treasury Department reports, rose recently and this may be a positive sign for homeowners who are still struggling to make ends meet due to factors like unemployment which have either reduced the overall income for their household or may have eliminated a homeowner’s income for the period of time. Yet, reports that were released in the early part of June, which report information gathered through April 2011, stated that all second lien modifications which have started numbered at 25,478, which is up from the previous month where 21,298 had begun.
Currently, homeowners are still in a position where they can qualify for second modification initiatives as this program is still ongoing as we near the summer of 2011, and because of continued high levels of unemployment and a recent slowdown in the number of jobs which were added to the economy, there are still men and women who are facing financial hardships and will require foreclosure prevention assistance so that they do not lose their home.
When it comes to acquiring a second lien modification though, homeowners must understand that first a primary modification must be granted and a homeowner must be working with a mortgage servicer who participates in this particular HAMP initiative. While most of the major financial institutions and other mortgage servicers that hold the majority of home loans will offer homeowners the opportunity to acquire a second lien modification, homeowners must understand that they may not necessarily be granted this particular type of modification, as some homeowners simply do not meet the qualifications for a modification on their second mortgage.
Homeowners can also consult with their servicer about other affordability efforts that are ongoing and may offer them a lower monthly payment if after a primary home loan modification, a homeowner is still having trouble meeting their payments. Numerous financial institutions have reported that homeowners have defaulted once again after receiving a modification on their mortgage, but there are some preventative measures that can offer these men and women a lower monthly mortgage payment while they work their way through financial hardships that are currently in place.