The Second Lien Modification Program (2MP) is part of the government’s Making Home Affordable initiative. 2MP modifies existing second liens, such as a second mortgage, HELOC, or home equity loans. Depending on your situation, your second lien mortgage lender may offer you a modification that lowers your monthly mortgage payment or it may eliminate a portion or all of what you owe on the second lien. Read on to learn more about 2MP and how to qualify for relief under this program.
(To learn more about the programs available through Making Home Affordable, visit our Government Foreclosure Prevention Programs.)
If your first mortgage was permanently modified under the Home Affordable Modification Program (HAMP) and you also have a second mortgage, you may qualify for a modification or principal reduction on your second mortgage under 2MP.
Generally, to qualify for 2MP all of the following criteria must be met (though you should contact your mortgage servicer to confirm eligibility requirements):
Since 2MP works in conjunction with HAMP, you’ll have to qualify for HAMP before becoming eligible for 2MP. Learn how to qualify for HAMP in the next section.
HAMP assists borrowers by modifying their first lien mortgages so that the monthly payments are lower and more affordable. You may qualify for a HAMP modification if:
After the first lien mortgage has been permanently modified under HAMP (and so long as the servicer of the second lien is a 2MP participant), the second lien servicer must offer to modify or reduce the principal on the second lien under 2MP. The 2MP offer is based on the financial information that was provided in the HAMP modification process. (To apply for HAMP, contact your first lien mortgage servicer.)
Learn more about HAMP.
The servicers that are currently participating in 2MP are:
For a current list of participating 2MP servicers, go to www.makinghomeaffordable.gov and click on “Explore Programs,” then “If You Have a Second Mortgage.” Next, select “Second Lien Modification Program (2MP)” and look at “Program Availability.”
The Making Home Affordable initiative is scheduled to end on December 31, 2016. If you have additional questions about HAMP, 2MP, or any other program under the Making Home Affordable initiative, you can call 1-888-995-HOPE (4673), go to www.makinghomeaffordable.gov, or call your loan servicer for more information.
Also, keep in mind that even if your mortgage servicer does not participate in the Making Home Affordable program or if you have been denied relief under the HAMP program, your mortgage servicer may offer its own alternative to foreclosure. See Nolo’s Alternatives to Foreclosure section for more information in this area.