Loan-Modification Plan Revised to Address Second Mortgages
In April of 2009, the Obama administration laid out new guidelines for its foreclosure-prevention program, aiming to stabilize the housing market.
Under the revised plan, mortgage-servicing companies that participate in the loan-modification program for second liens must automatically modify the second mortgage when the first mortgage is reworked. The government will share in the cost of reducing the interest rate on second mortgages for five years. As an alternative, it will pay holders of second mortgages to extinguish that debt.
Read More
