- The government's 2nd Lien Modification Program, or 2MP, is designed for homeowners who are struggling to make their monthly mortgage payments in part because they have a second mortgage loan payment to make. Under the program, lenders receive financial incentives if they agree to modify the second home loans of homeowners who have suffered an unexpected financial setback. Lenders can reduce the monthly second mortgage payments of these homeowners in several ways.
- Under the government's program, lenders can reduce the size of homeowners' second mortgage loans by reducing the interest rate on these loans to 1 percent for homeowners whose payments cover both principal and interest and to 2 percent for those whose payments only cover interest. Lenders can also extend the term of the second loan to 40 years, reducing the monthly payment because the loan amount is stretched out over a longer period of time. Lenders can also forgive a portion of the second loan's principal balance.
- To qualify for 2MP, homeowners must have taken out their second loan on or before January 1 of 2009. Second loans must have an unpaid principal balance of at least $5,000 and a monthly payment of at least $100. Homeowners must also have had their first mortgage loans modified under the federal government's Home Affordable Modification Program.
- HAMP provides financial incentives to mortgage lenders who agree to modify the first loans of homeowners who have suffered financial crises that make their current home loan payments unaffordable. Homeowners must first go through this program and complete a successful modification of their primary mortgage loans to qualify for government-sponsored assistance with their second mortgage loans.
2nd Lien Modification Program
Shrinking the Payment
Qualifications
Home Affordable Modification Program
SHARE
