The 2nd Lien Modification Program (2MP) may be just what you need. A few large institutions have already signed on to the 2MP program: Bank of America (and Countrywide), CitiMortgage, Chase (with EMC and WaMu), and Wells Fargo (and Wachovia). More are expected to join this growing list.
Below are some of the eligibility requirements:
- You have a second mortgage on your home and:
- Your first mortgage has been modified under HAMP
- Your second mortgage provider is one of the participating banks
- Your second lien was originated on January 1, 2009, or earlier
- Your second lien has an unpaid principal balance of $5,000 or more and a monthly payment of $100 or more
- The second lien servicer has a 2MP modification agreement or trial period plan in place for you by December 31, 2012
There are some restrictions. You can’t participate if your mortgage is subordinate to a second lien, or if it is a home equity loan in first lien position. 2MP is also not for you if you don’t have to make payments on your second lien or interest is charged until the first is paid in full. Liens insured, guaranteed or held by a Federal agency like FHA, HUD, VA, or Rural Development aren’t covered under 2MP.
If you qualify, however, it can be a financial lifesaver. To learn more, contact your mortgage provider or a housing counselor through HUD.