Modifying a Second Mortgage Under Making Home Affordable
The Making Home Affordable program announced by President Obama now includes provisions for modifying second mortgages.
The key provision for second mortgages is that they must match any loan modification made to the first mortgage. For example, if the first mortgage was modified to a 40 year loan then the second mortgage would be modified to a 40 year loan. If 10% of the principal of the first mortgage was deferred to the end of the loan then the same would hold true for the second mortgage.
The bottom line is this - you can modify your second loan down to as low as 1% for five years for interest only second mortgages and 2% for five years on conventional second mortgages.
