Posted by Teresa/FL on 11/3/09 2:23pm
Msg #309669

Interesting article about the "Making Homes Affordable" plan

http://www.walletpop.com/mortgages/eim/article/do-the-new-mortgage-rescue-plan-rules/748233

I found the information about 2nd mortgage holders interesting.

Reply by Linda_H/FL on 11/3/09 2:43pm
Msg #309672

"A homeowner with a house appraised at $200,000 who carries a first mortgage of $240,000 and a second mortgage of $60,000 may still qualify for refinancing the first mortgage at up to 125%, or $250,000"

Wow...talk about upside-down....you end up with a house valued at $200,000 with $310,000 in liens...providing the second stays in place.

Isn't this thinking what got us where we are?

Reply by Teresa/FL on 11/3/09 3:07pm
Msg #309673

I don't think most 2nd mortgage holders would agree to subordinate their claim on the property in favor the the first mortage holder. What would be their incentive to do so? IMO, the 2nd mortgage would probably never be paid off.

Reply by Linda_H/FL on 11/3/09 3:16pm
Msg #309674

I know I wouldn't....I'd want to be paid off....let the new first mortgagee issue a second mortgage if they so desire...but seeing the upside-down I'd want my money..