Sounds like you are talking about a second loan. HELOCs and HELOANs have their own set of rules depending on the lender providing them. You'll need to consult some lenders to see what their rules are, but you should also review the modification to see if that is ok by the terms of the mod. If a principal reduction was part of the modification, she may not be able to take money out of the home.
This will be difficult, if it is possible at all.
Many lenders look at a loan modification the same way they look at a short sale. It actually makes sense, in both situations the lender has agreed to take less. In a modification they have agreed to take a lower interest rate or less principal or both.
You will need to contact a local bank to see what their guidelines are for their Heloc programs, it will vary from lender to lender. It will also depend on the circumstances and terms of modification as well.
I guess if the value went up and a local bank was comfortable with the LTV your mom's credit qualifications...there is no definite answer ...good luck
It will likely be difficult for your mother to obtain a HELOC after completing a loan modification, since the lender already agreed to modify the loan terms that were originally agreed to and is getting less in return.
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