Home Affordable Modification Program Secrets to reduce second home loan
The Second Lien Modification Program is a complementary program to the Home Affordable Modification Program designed for first lien mortgages.
This Program is expected to reach approximately 1 – 1.5 million responsible homeowners who are struggling to afford their mortgage payments.
The Second Lien Modification Program (2MP) coordinates with Home Affordable Modification Progam’s (HAMP) first mortgage modification program to lower payments on second mortgages and offer comprehensive affordability solutions for homeowners.
The requirements for second lien modification program (2MP) are:
* Only second liens with corresponding first liens that have been modified under HAMP are eligible for a modification or extinguishment under 2MP.
* Second liens originated on or before January 1, 2009 are eligible for a modification or extinguishment under 2MP.
* Only second liens with an unpaid principal balance (at initial consideration for the second lien modification) equal to or greater than $5,000 are eligible for modification incentive or cost share payments under 2MP. There are no unpaid principal balance limitations for investor incentive payments in conjunction with extinguishment of second liens under 2MP.
* A second lien may be modified only once under 2MP.
* A mortgage loan that is subordinate to a second lien is ineligible under 2MP.
Modification or extinguishment of such a subordinate mortgage loan in place of the second lien will not satisfy the servicer’s obligation under 2MP to modify or extinguish the second lien.
* If a second lien is modified under 2MP, it is not eligible for payment of extinguishment incentives under 2MP.
* A home equity loan that is in first lien position is not eligible under 2MP and should be evaluated for modification under HAMP.
* A mortgage lien that would be in second lien position but for a tax lien, a mechanic’s lien or other non-mortgage related lien that has priority is eligible under 2MP.
* A second lien on which no interest is charged and no payments are due until the first lien is paid in full (e.g., FHA partial claim liens and/or equity appreciation loans) is not eligible under 2MP.
* Borrowers may be accepted into the program if a fully executed 2MP modification agreement or trial period plan is in the servicer’s possession on December 31, 2012.
For more details download detailed guidelines by CLICKING HERE (271 Kb pdf)
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