2nd Mortgage Foreclosure
What options do I have when my 1st mortgage was modified, but the same bank foreclosed on my 2nd mortgage?
I have plenty of equity in my home and could have had both mortgages modified, but the bank would not modify both loans. Mortgage Loan Modification Answer:
Was the your first mortgage modified under the HAMP program? If so, then your 2nd mortgage should have been eligible for the 2MP HAMP Loan Modification
However, if your first was not modified under the HAMP program, your lender may not be obligated to modify your 2nd mortgage as well. It does not make much sense for them to modify one but not the other. You may want to keep escalating to a decision maker within your lender who can review your situation further. Sometimes, if you have substantial equity in your home, and the lender can recoup the entire loan balance if your property is sold at a foreclosure auction, they may take the foreclosure route since it does not present much risk for them. However, in your case, it is a bit unusual that they actually modified your first mortgage and then refuse to modify your second.