Second Lien Modification Program (2MP)
The HAMP loan which is currently administered by Fannie Mae (FNMA) for the U.S. Treasury Department will help to reduce your monthly mortgage payments to 31% of your gross monthly income.
As of Jan 1, 2011, FNMA introduced the Second Lien Modification Program (2MP). If a homeowner has a first mortgage that was permanently modified under HAMP along with a second mortgage, then they may be eligible for a modification of principal reduction on the second mortgage as well.
To qualify for the Second Lien Modification Program:
- The property must be owner-occupied.
- The mortgage must be a first lien originating prior to or on January 1, 2009.
- You must provide a written financial hardship letter that discusses the nature of your financial hardship for delinquent payments or future financial hardship.
- You must be able to document sufficient income to support the new modified payment.
- The unpaid principal loan balance must be equal to or less than $625,500 for one unit. Maximum loan amounts for 2-4 units owner-occupied are higher). (Ref . the link here for High Cost Area (HCA) loan limits for 1-4 units).
- Your mortgage payments must be greater than 31% of your gross monthly income. (However, payments could be less than 31%, at the lender/servicers discretion).
- No felony, larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction within the last 10 years.
Additional HAMP and Second Lien Modification Prgram requirements are:
- All the above qualifications must have been met
- The homeowner’s first lien must have been modified under the HAMP
- The homeowner must not have missed three consecutive monthly payments on the HAMP