2MP HAMP : Second Lien Modification Program

 2MP HAMP or 2MP for short, and also known as the Second Lien Modification Program, was recently introduced by the US Treasury Department to complement the existing HAMP (Home Affordable Modification Program) which is geared towards first mortgage liens.

The introduction of 2MP HAMP is a very welcome financial relief for distressed homeowners who not only have a first mortgage, but also have a second mortgage on top of it.  Bank of America, Wells Fargo, Citi, and Chase have all recently signed on to offer this program to their borrowers who are applying for a loan modification on their second mortgage loans.

Together, 2MP and HAMP create a much needed complete solution to make both first and second mortgages affordable.

2MP HAMP Guidelines

If your first mortgage/lien has been modified under HAMP, your second mortgage lender, if they partcipate in the 2MP program, has two choices:  1.  Either they modify your second mortgage/lien according to the 2MP guidelines, or 2.  Accept a lump sum payment from the US Treasury (usually cents on the dollar especially if your home value has tanked relative to the loan balance) to fully extinguish your second lien.  Gone!  Poof!

Your 2MP HAMP loan modification offer will rely on the financial information you submitted for your HAMP modification for your first lien.  Here's the best part...NO re-evaluation is necessary from  your second lien lender.

  • If your first lien has already been modified under HAMP, your second lien, if you have one, is eligible to be either modified or extinguished through 2MP.
  • Your second lien must have been originated prior to January 1, 2009.
  • Under 2MP, your second lien can only be modified once.
  • All other junior liens behind your second lien, if any, are NOT eligible for 2MP.
  • A second lien can only either be modfiied or extinguished.  It cannot be both.  This seems obvious, but worth noting anyway.
  • You do not qualify for 2MP HAMP if your second lien lender does not charge payments or interest until the first lien is paid in full.  This applies to equity appreciation loans or FHA partial claim liens.
  • You may be approved for 2MP if you have a signed trial or final 2MP loan modification agreement confirmed as submitted to your lender or servicer by December 31, 2012.
  • Although the 2MP program is well suited for home equity loans, you can apply only if your home equity loan is in second lien position.  If it is in first lien position, you have to apply for a modification under HAMP.
  • If you have mortgage loan that would have been in second lien position, but there are priority liens such as tax liens, mechanic's liens, or other non-mortgage related liens that are in front of it,  your second mortgage lien IS eligible for 2MP.
All of the above apply to Non-GSE second liens only.  These are loans that are not owned or backed by Fannie Mae or Freddie Mac .  If you have a second lien that is backed by either Fannie Mae or Freddie Mac, please contact your servicer/lender for more information.

HAMP Loan Modification Guidelines

Loan Modification Success Stories and Approved Loan Modification Agreements

No Upfront Fee Loan Modification

Traditional Loan Modification

Foreclosure Options

Foreclosure and Bankruptcy

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