Modifications on Second Mortgages
The Obama Administration is looking to expand their $50 billion plan with a new program which will help people facing foreclosure by allowing people to modify their second mortgage or piggyback loans.
Much like the other plans they are offering cash incentives to lenders who agree to reduce the monthly payments or forgive the loans entirely.
Millions of home buyers took out second mortgages to purchase homes with little to no down payment or to pay home improvements, but those second-lien mortgages have to be negotiated separately. This often makes it more difficult to modify primary loans. This could be a good step forward for home owners.

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