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Guest1212
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Dan Stephens
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Posted: Mon Nov 16, 2009 3:14 pm Post subject:
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I'd be skeptical of that proposition unless your home is way underwater (market value less than mortgage by more than the $80,000 the second mortgage lender would lose). The lender would also probably consider their risk by looking at your payment history, credit history, and ask about your current employment and income. In general the lender would require documentation for a loan modification. But the most serious problem is how such a transaction would get reported on your credit, if you completed it. Probably it would be reported as a modification and that could have severe consequences for getting mortgage loans later, and probably really hurt your credit scores. As you know dropping credit scores can trigger all sorts of immediate adverse financial consequences, and affect your lives for a long time. It would take time to restore credit.
If you are not underwater, and you don't like the terms or rate or payment on your second mortgage, consider a refinance. Even with mortgage insurance you might be better off, if your rate drops enough. With an FHA 15-year loan at about 4.5% these days, there's no monthly MI. No MI either with any kind of VA or USDA Rural Development loans.
Dan Stephens
Mortgage Banker
Home Savings of America, FSB
[Contact details and email address deleted as per forum rules. Thanks.] |
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 gmakerley
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Joined: 09 Nov 2007
Posts: 12346
Location: bloomfield, ct
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