What if the borrower has a second lien mortgage and would like to apply for a Home Affordable Modification?
Only first lien mortgages are eligible for modifications under HAMP. If a borrower has a junior lien, the servicer may, based on the requirements of the investor or the terms of the applicable servicing agreement, need to obtain subordination agreements from the junior lien holder. Treasury recently announced plans to expand MHA to increase affordability for borrowers by providing incentives to servicers to modify second mortgage liens. Under the 2nd Lien Modification Program (2MP), if a borrower’s servicer is a program participant, the second lien will automatically be eligible for a modification when the first lien is modified under HAMP. The 2MP program is expected to be fully implemented in the first quarter of 2010 at which time, detailed guidelines regarding the 2nd Lien Modification Program will be available on www.HMPAdmin.com.
Related Questions
- Can I get a mortgage modification through the Home Affordable Modification Program (HAMP) if my loan is not owned or guaranteed by Fannie Mae or Freddie Mac?
- Does the servicer have to receive the signed Home Affordable Modification Agreement from the borrower prior to the effective date of the modification?
- What if the borrower has a second mortgage and would like to apply for a Home Affordable Modification?
