Yes, Borrowers are often still eligible for mortgage modifications regardless of the existence of a second mortgage or equity line even if that mortgage is in default. Lenders often only care about granting modifications that provide them with government money, and not the homeowner’s overall chances for long-term success. The existence of the second mortgage can complicate the modification process. As a result, you should address the secondary problem with knowledgeable professionals, but you should not let it dissuade you from seeking a mortgage modification or agreeing to a written permanent modification of your first mortgage.

  • Concentrate on your first mortgage and actively seek and agree to permanent mortgage modification that only addresses first mortgage problems.
  • Although second mortgage default needs to be addressed eventually, don’t confuse your request for a first mortgage modification with discussion of your second mortgage problems. It all only serves to decrease your chances for a good modification. Address second mortgage problems later.