Modifying your second lien and getting qualified for a home loan modification

Often time, prospective home-buyers become homeowners by securing a secured mortgage loan in the first instance and then subordinate them with a second mortgage loan, often known as the home equity loan. Due to the poor economic condition in the economy, too many households and individuals are suffering from lack of funds and therefore are not being able to manage the mortgage payments on both their first mortgage loan and second mortgage loan. While the first mortgage loan or the original loan on the property can be modified, most struggling homeowners are wondering about the chances and prospects of modifying their second mortgage loan. If your first mortgage loan has been modified under the Home Affordable Modification Program, you can be sure that this Federal government modification program will also help you achieve affordable payments on your home equity line of home equity line of credit.Second liens on your home – Modifying themLoan Modifications Charleston SCThe second mortgage loans are usually called home equity loans or second liens. Technically, the second liens are bound to be subordinate to the first mortgage loans. While you opt for loan modification on your first mortgage loan, the high payments on the second mortgage loan can still be taking a toll on your personal finances. But you need not fret as there is a federally sponsored program called the Home Affordable Second Lien Modification program, abbreviated as the 2MP, they might help the struggling homeowners to alleviate the stress of making sky-high payments on their second liens.Eligibility criteria for modifying your second mortgage loanNow that you know that there is a federally sponsored program through which you can modify your second mortgage loan, you must be wondering about the eligibility criteria. Your first mortgage loan requires to be modified under the HAMP, and apart from this, the 2MP applications shouldn’t have missed 3 continuous monthly installments on their HAMP modification arrangements. The second lien or home equity account needs to be opened before 1st January, 2009 if the borrower wants to qualify for the 2MP. You should not have been convicted of theft, felony or forgery in relation with a mortgage transaction since the last 10 years. Besides, the individual mortgage lenders who participate in 2MP might even have their own requirements; for instance, you might have to owe at least $5000 on your second mortgage loan for qualifying for 2MP.The potential benefits of loan modification through 2MPIf you’re someone who’s struggling to meet your monthly mortgage payments on the second mortgage loan, you can follow some guidelines in order to qualify for the same. Check out some benefits that you may reap when you modify your second mortgage loan through the 2MP.1. The interest rate that you pay on an interest-only home loan might be slashed off by 2% 2. The interest rate on the second mortgage loan will be revised by up to 1% 3. The lender may forgive a portion of the second mortgage loan under the terms of the 2MP 4. The forbearance that you receive on the first mortgage loan can be carried over to the second 5. The repayment term of the second mortgage loan could be extended to 40 years.The names of the servicers who are presently participating in 2MP are Bank of America, CitiMortgage, Inc., GMAC Mortgage, LLC, J.P Morgan Chase Bank, NA, Bayview Loan Servicing, LLC, Wells Fargo Bank, NA, Nationstar Mortgage LLC and many more. Check the availability of your lender before taking the plunge into the 2MP. Take into account the above mentioned details on second mortgage modification so that you may take an informed and measured decision. The sooner you modify the loan, the easier it will be for you to repay the loan and safeguard your home.

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