Second Mortgage Modification

Why Would You Consider Modifying Your Second Mortgage?

In 2011 there were a whopping 2.7 million foreclosure filings made in the USA, which although showed a drop from 2010 stats, is still a pretty scary figure. Approximately 1 out of every 69 housing units received at least one foreclosure filing. Foreclosure filings occur when you can no longer meet your mortgage payments and as a result the lender takes action. However it’s not always your fault. During the last 5 years many people have been unfortunate enough to lose their job as a result of companies cutting back due to the economic recession, leaving them unable to pay the monthly instalments. Other common causes are falling ill and being unable to work and the breakdown of marriages. But there must be some things you can do to try and avoid foreclosure, right? Sure there are! Below are some of our top tips to help keep you in your home.

Simple Steps To Keeping Foreclosure At Bay

Make cutbacks if necessary. Keeping the roof above your head should be one of your top priorities. Its way more important than your membership at the local golf club or the subscription to your favorite cable channel. If you’re having trouble meeting mortgage payments, sit down and think what non-essentials you could cut back on.

Use assets to dig you out of a hole. If you’ve lost your job and are struggling to meet payments, have you thought about selling off some of your assets to cover you until you get your next job? Maybe you have a flashy car, some expensive consumer electronics or some jewelry you could sell to give you some breathing space.

Protect yourself before you start. One of the biggest causes of foreclosure is agreeing to terms and conditions which are not suitable for you, either because you didn’t read or understand the contract or because you fell victim to a predatory lender who took advantage of you. Before signing, make sure you understand everything in the contract and are aware of the total amount re-payable. Speak to a professional if you don’t understand something.

Speak to a housing counselor. By speaking to a HUD qualified housing counselor you might realize that you have more options available to you than you previously though. You might be able to refinance your loan or modify it amongst other things.

Home Loan Modification and the Making Home Affordable Program

The following is a list of the current Home Loan Modification options offered under the MHA plan (taken from www.makinghomeaffordable.gov): Home Affordable Modification Program SM (HAMPSM), Principal Reduction Alternative SM (PRA), Second Lien Modification Program (2MP), FHA Home Affordable Modification Program (FHA-HAMP), USDA’s Special Loan Servicing, Veteran’s Affairs Home Affordable Modification (VA-HAMP), Home Affordable Foreclosure Alternatives Program (HAFA), Second Lien Modification Program for Federal Housing Administration Loans (FHA-2LP), Home Affordable Refinance Program (HARP), FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance), Home Affordable Unemployment Program (UP), Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF)