Homeowners with GMAC Mortgage who have a second home loan attached their property may be in a position to take advantage of the second lien modification program when financial troubles have arisen and these homeowners are unable to meet their mortgage payment obligation. Obviously, homeowners will have to pursue a primary home loan modification first but this second lien modification program has been able to help homeowners when a primary modification was not enough, and recent reports have shown that GMAC Mortgage has seen an increase in the number of successful modifications made in this particular program.
Between June and July, GMAC Mortgage reported that the number of second lien modifications they had started in the federal program increased from 1,141 to 1,991, and the number of active modifications that had a partial extinguishment of a homeowner’s second lien increase from 1,109 to 1,693. Obviously, in instances where homeowners are struggling to make ends meet because of their second mortgage, modifying this home loan can have similar benefits as a primary home loan modification as it will reduce the overall mortgage debt obligation of homeowner must meet and, potentially, lead to foreclosure prevention.
Yet, for a variety of homeowners with major banks participating in this plan, there has also been the attraction that some are receiving a full extinguishment on their second lien as a part of this second lien modification initiative. For GMAC Mortgage, it was indicated that the number of full extinguishment that had been seen as of June 2011 stood at 32 but in July this number jumped to 297, which for homeowners who have been struggling with this particular type of mortgage situation is going to obviously do a great deal in terms of helping them find the stable mortgage payment arrangement they need to keep their home.
While there are fewer homeowners who are likely facing problems with a second mortgage than those who are simply looking for help on their primary home loan, second lien modifications are still needed by some simply because of factors surrounding the housing market and second mortgages are still a drain on the ability of certain homeowners to pay their total mortgage debt obligation. Homeowners do have options in some states for help with not only their mortgage payment but these second liens, so it may be helpful for some individuals to contact their state’s housing agency to inquire about programs like the Hardest Hit Fund, but this initiative from HAMP is still being used by many major servicers and, in instances where a second mortgage is indeed a problem, has been worth exploring for some who fear the loss of their home without some form of intervention or affordability program.