Is There Loan Modification Help for Borrowers with Second Mortgages?
While 2MP has been in place for a year, and while lenders holding about half of all second liens in the country have signed up, the program has yet to modify a single mortgage. One impediment is that new changes to HAMP offer the possibility of a principal reduction when the first mortgage is modified. However, many lenders take the position that they will not grant a principal reduction on a first mortgage until the second mortgage is completely extinguished. 2MP Finally Under Way After almost a year, 2MP is finally getting off the ground. Bank of America has announced that it is sending out letters advising its eligible home equity customers that they may be able to get modifications. The following servicers have also announced they are on board: Citigroup, JP Morgan Chase, Wells Fargo, BayView Loan Servicing, LLC, Servis One dba BSI Financial Services and iServe Servicing, Inc. Under 2MP, borrowers can get fully-amortizing second mortgage rates dropped to as low as 1% for five years
