Is a home equity account modification right for me?
If your first mortgage has been modified under the Home Affordable Modification Program, this federal government modification program may help you achieve more affordable payments on your home equity loan or line of credit.
You may be eligible for a Home Affordable Second Lien Modification if:
You successfully completed the trial period and your first mortgage was permanently modified under the Home Affordable Modification Program
You opened your home equity account on or before January 1, 2009
Your home equity account is a second lien mortgage Your home equity loan or line of credit is considered a second lien mortgage if it is the second loan against the value of your home.
You have an outstanding principal balance of at least $5,000 on your home equity account, and your monthly payment is at least $100
You're in good standing on your modified first mortgage payments, which means that you've never been three or more payments past due at the end of any month on your first mortgage Home Affordable Modification
There are no fees associated with the Home Affordable Second Lien Modification (2MP) program.
Depending on your current financial situation, you may still be eligible for one of our other home equity assistance programs.
How do I get started with a Home Affordable Second Lien Modification?
Receive a Home Affordable Modification of your first mortgage
Getting a home equity modification through this federal government program begins with receiving a Home Affordable Modification of your first mortgage. If your first mortgage is not in the process of being modified, check to see if you are eligible.
To modify both your first mortgage and your home equity loan or home equity line of credit, start with the Home Affordable Modification Program.
Now that I'm in the process, what's next?
I’ve modified my first mortgage under the Home Affordable Modification Program.
Once your Home Affordable Modification has been made permanent, we'll contact you about your eligibility for a Home Affordable Second Lien Modification.
I’m eligible for a Home Affordable Second Lien Modification.
Depending on your circumstances, if you're eligible for a Home Affordable Second Lien Modification, you may have to complete a trial period of at least three months at your new payment amount.
If a trial period is needed, we'll send you a letter providing the terms of the trial period plan, the amount of your new payment and payment coupons for the trial period. You must successfully complete the trial period to receive a permanent modification on your home equity loan or line of credit.
If you're not required to complete a trial period, and you're eligible for a Home Affordable Second Lien Modification, we'll send you the final Home Equity Modification Agreement, specifying the terms of your home equity modification offer.
If you don't successfully complete the trial period, you may still have options. Please contact your Customer Relationship Manager right away to discuss available alternatives.
I've received the Home Equity Modification Agreement.
Once you receive, sign and return your Home Equity Modification Agreement documents, your Home Affordable Second Lien Modification will become permanent.
Home Affordable Second Lien Modification Frequently Asked Questions
In most cases, your initial interest rate and payment will be lowered. The new payment amount will depend on your specific situation. The particular methods used to lower your payment will be specified in your Modification Agreement.
Yes. We'll review your eligibility for all programs, including this one.
Please contact us. If it's the right option for you, we’ll provide you with additional information and documents to initiate a short sale.
If you can no longer afford to make your mortgage payments and your house is worth less than you owe, a short sale allows you to sell your house at the current fair market value. You then have the option to move to a more affordable situation. Because the proceeds from the sale may not pay off all that you owe, the investor or owner of your loan must approve the sale. Depending on your situation, you may be eligible for a deficiency waiver. In that case, you won’t be required to repay any remaining loan balance after the sale.