As property devaluation has continued to be a problem for many homeowners, there are those who are in positions where second mortgages, that may be the result of actions like acquiring a home equity loan, are becoming more of a burden when homeowners are struggling to make payments on both a primary and secondary mortgage, but this issue has been made worse situations that have arisen where factors like unemployment have also crept up and caused some homeowners further financial distress. Yet, there are also some concerns that homeowners have when it comes to a holder of a second lien filing for foreclosure when these missed payments may become problematic, but homeowners are being reminded by financial professionals that there are opportunities for assistance on second mortgages as well.
Obviously, the homeowners who have a second mortgage may also see problems related to this particular debt obligation that come from negative equity issues that have arisen, so there are some arguments that when a homeowner has an underwater mortgage and may need assistance when it comes to paying their home loan, some mortgage servicers and investors may be willing to help homeowners find an affordable solution as foreclosure and the subsequent sale of their property would likely lead to a loss, as again equity has decreased for many homeowners over the past months and may continue to do so in the near future.
Yet, there are some homeowners who may even get assistance on their second mortgage from state housing agency programs, but these plans are not necessarily going to be beneficial or available in all cases but homeowners may qualify for a second lien modification from the federal modification plan as servicers have been directed to consider homeowners with a second mortgage for this particular type of assistance after a primary modified mortgage payment has been offered. Understandably, some homeowners may be able to get payment assistance on their primary home loan and are in position where they can afford not only their primary but secondary mortgage payment as well, but in cases where foreclosure may come at the hands of a second mortgage holder, homeowners do need to remember that there are modification options that can help.
In some cases, homeowners may have opportunities for a modification directly from their servicer as private plans can be beneficial in the area of reduced payments but homeowners are suggested to make sure that their finances are in order so that they can benefit from these modified payment as defaulting has become an issue for some as of late, but we have also seen patterns where options like private modifications have also brought a higher rate of redefault. These modifications on a second mortgage are not always available, but as more homeowners see financial distress and problems arise, we have also seen major mortgage servicers increase in terms of the number of active second modifications in place, which does still give hope to homeowners who may have this problem and are currently pursuing this form of assistance.