Many desperate homeowners are concerned that their HELOC lenders won’t give approval for their participation in the federal Making Home Affordable mortgage modification program.

Good news: you do not need to get approval from your HELOC lender in order to apply or have your mortgage modified.

The Daily Camera explains some of the qualifications necessary:

“Your monthly payment must be above 31 percent of your family gross monthly income. Monthly payment includes your first mortgage payment, homeowners insurance, property tax, and HOA/condo fees. Unlike the refinance plan, the modification plan does not require the acceptance of the HELOC or second mortgage lender…

You need to be suffering a change in circumstances that leaves you unable to make your payment, such as being laid off or having a toxic loan. You must sign an affidavit of financial hardship and verify your income.”

The mortgage modification program won’t change the terms of your HELOC. But, you do not need to seek permission from your second mortgage lender.

See Also:

How the Foreclosure Prevention Plan Helps HELOC Borrowers

Tags | Heloc, home equity line of credit, Making Home Affordable, mortgage crisis, mortgage modification