Bring your second mortgage payment down with 2MP.
Information about the government’s Home Affordable Modification Program (HAMP) is widespread. For those struggling to also pay on a second mortgage, you may be able to use a lesser-known government program meant to complement the HAMP called the Second Lien Modification Program (2MP) to make these payments more affordable, too.
Qualifications For 2MP
- First lien on same property has been modified under HAMP and the second lien servicer is participating in the program. Program participants include Bank of America (including Countrywide), BayView Loan Servicing, LLC, Chase (including EMC and WaMu), Citi Mortgage, Inc., iServe Servicing, Inc., Servis One dba BSI Financial Services, Wells Fargo (including Wachovia)
- Loan originated on or before January 1, 2009.
- Mortgage does not have an unpaid principal balance (at consideration for the modification) of less than $5,000 or a pre-modification scheduled monthly payment of less than $100.
- Mortgage has not yet been modified under 2MP.
- Mortgage is not subordinate to a second lien or is not a home equity loan in first-lien position.
- Mortgage is not a second lien on which no interest is charged and no payments are due until the first lien is paid in full.
- Second lien servicer is in possession of a fully executed 2MP modification agreement or trial period plan by December 31, 2012, or the second lien is not insured, guaranteed, or held by a Federal government agency (e.g. FHA, HUD, VA, and Rural Development).
An important note is that the first lien must be modified under the HAMP before the second lien can be modified under 2MP. This may prove difficult considering the amount of time most lenders are taking just to modify a first lien. However, if the first and second lienholders are the same, the process may be faster and smoother.
If the two lienholders are different, you will have to give permission for the second lienholder to review the first lienholder’s mortgage information. This is usually just a consent form signed by all borrowers.
A second mortgage modification granted using this program may extend the term of the loan to 40 years, reduce the interest rate to 1% or 2% – depending on certain criteria – or defer principal if also done on the first lien. With deals like these, it’s well worth it to obtain a modification under 2MP if you meet the requirements.
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