SETTLEMENT OF A SECOND MORTGAGE

If your first mortgage was modified or in the process of being modified, and you have  a second mortgage on the property, either HELOC or other type of loan, the Obama Administration has created numerous programs to assist with eliminating the debt on these second mortgages.  Often, a homeowner is upside down and the options are limited, however under the Second Lien Modification Program relief exists.

• Second Lien Modification Program (2MP)  –  This allows eligible homeowners who are upside down on their mortgage, and owe more on the property then the home is worth, to reduce the mortgage debt to the 2nd mortgage under the HAMP program.

• Treasury/FHA Second Lien Program –  This program is for homeowners with second mortgages whose first mortgage servicers agrees to participate in the FHA Short Refinance- to reduce or eliminate the second mortgage all together.  The total amount of mortgage debts after the refinance can not exceed 115% of the homes current value.

• PRA or Principal Reduction Program – Another program designed to help homeowners whose homes are worth less then they owe, to reduce the balance owed.

• Home Affordable Unemployment Program (UP)   – This program was designed for homeowners that have lost their jobs and became unemployed and unable to make mortgage payments.  UP provides temporary reduction or suspension of mortgage payments, at least 12 months, while the homeowner is seeking reemployment.

• HAFA – Lastly, the program for homeowners who do not wish or simply can not keep their homes. This is the short sale under the Making Home Affordable that can offer relocation assistance to homeowners and extinguish the debt on a first and/or second mortgage.

At the Law Offices of Jacqueline Salcines, PA, we can help you navigate through the maze of homeownership.  Knowing what you qualify for, the type of mortgage you have, the servicer participation in the program and the fair market value of your home, is the first step.

The first consultation is always free of charge and can determine, after careful examination of the above details, provide options available to you.   Call today.

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