Question about 2MP Full Extinguishment

[Tnado]

I've noticed that the number of 2nd mortgage extinguishments has been rising lately. I'm hoping someone on this forum can help me better understand how this works. Here are some questions...

1. What are the eligibility requirements? Does my first mortgage have to have been modified under HAMP for my 2nd to be eligible for an extinguishment?

2. I've heard that banks get paid 12% of the loan balance if they extinguish a 2nd mortgage. Is this true?

3. I've been following the "strategy" and have been holding out for a 5% settlement. If the bank gets 12% from the government, then why would they settle for less than 12% from me?

I appreciate any information you can provide. I've been having trouble finding anything clear and current.

Thanks.

Tnado

[Tnado]

I've found some answers to my questions here...

Second Lien Modification Program (2MP)

Looks like you need to have your 1st modified through HAMP before you can get the 2nd extinguished. That leaves me out since my mod was in-house. Maybe this information will help others.