Second Lien Modification Program — Get Your Home Equity Line Modified

Many homeowners are in a situation where they have two mortgages on their primary residence — a first mortgage and a home equity line (or another type of second mortgage).  In these tough times it can be hard to make either or both payments.  There are many federal programs in place to assist with your first loan, such as HAMP, HAFA, or HARP. 

The good news is, there is also a program to assist with your home equity line or second mortgage.  This is called the Second Lien Modification Program (2MP).  If, and only if, your first loan is modified under HAMP, you may qualify for a home equity modification under 2MP.

What are the criteria for determining whether or not you are eligible for a 2MP modification?  First and foremost, you must be eligible under HAMP, and your loan must have been modified under HAMP.  Additionally, you must meet the following requirements:

1.   You must have a balance of $5,000 or more on your second mortgage.
2.   Your monthly second mortgage payment must be at least $100.
3.   You cannot have missed three consecutive payments on the loan you modified under HAMP, after the modification.
4.   In the last ten years, you have not been convicted of a crime such as fraud, forgery, felony larceny, theft, tax evasion or money laundering with respect to any mortgage or real estate transaction. 

Not all banks are participating in 2MP, but if your bank is participating, you should check to see if you qualify.  If you do qualify, your secondary lender will be offered incentives to reduce your obligation under the second mortgage.