Comments on: Your First Mortgage is Too High. There’s a Second: What do you do? http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sun, 15 Nov 2009 18:55:57 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Fielding Mellish http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8384 Fielding Mellish Mon, 24 Dec 2007 20:23:32 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8384 I believe the Senate proposal to allow FHA loans to $417,000 also allowed unlimited CLTV's on top of FHA loans. Not yet law, though. I believe the Senate proposal to allow FHA loans to $417,000 also allowed unlimited CLTV’s on top of FHA loans. Not yet law, though.

]]> By: Ann http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8376 Ann Mon, 24 Dec 2007 00:10:39 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8376 I can think of two mortgage brokers in the same boat.. I can think of two mortgage brokers in the same boat..

]]> By: Phil Caulfield http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8316 Phil Caulfield Sat, 22 Dec 2007 00:00:29 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8316 I have not run into this yet but I know it's coming. If I was the second mortgage lender I would be happy to subordinate. I would love to hear more success stories and how it was negotiated. I have not run into this yet but I know it’s coming. If I was the second mortgage lender I would be happy to subordinate. I would love to hear more success stories and how it was negotiated.

]]> By: Eric Ogunbase http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8313 Eric Ogunbase Fri, 21 Dec 2007 20:55:41 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8313 There are very few Loan Officers who would even consider this course of action, and even have the stones to bring it up to the lender. If the lenders on the 2nds agree to go for this, they really have nothing to lose. I'm surprised more people didn't think of this. But it's clear that the thinking folks are a distinct minority. Good stuff Chris. There are very few Loan Officers who would even consider this course of action, and even have the stones to bring it up to the lender.

If the lenders on the 2nds agree to go for this, they really have nothing to lose. I’m surprised more people didn’t think of this. But it’s clear that the thinking folks are a distinct minority.

Good stuff Chris.

]]> By: ian mariano http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8312 ian mariano Fri, 21 Dec 2007 19:32:29 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8312 Ouch...right off the bat i can think of four people in the same situation. -Ian Mariano Ouch…right off the bat i can think of four people in the same situation.

-Ian Mariano

]]> By: Jeremy http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8311 Jeremy Fri, 21 Dec 2007 19:21:40 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8311 The HCLTV on a DU firs mortgage is maxed at 105. Also, when there is subordinate financing on a DU deal, the first is maxed at 80. Try to run a DU on this scenario right now and see what happens. The idea of subordinating even when the CLTV/HCLTV is at a very high percentage and improving the borrower's payment are very noble, but it won't happen on conforming lending. It will be an ALT A or subprime deal that would probably have terms as bad as the current loan, and it would prolong the inevitable. The fact of the matter is that there have been and will continue to be a high amount of foreclosures. I am all in favor of exhausting all efforts to to help people avoid foreclosure, but the high CLTV suboridination will not help many of them. The HCLTV on a DU firs mortgage is maxed at 105. Also, when there is subordinate financing on a DU deal, the first is maxed at 80. Try to run a DU on this scenario right now and see what happens.
The idea of subordinating even when the CLTV/HCLTV is at a very high percentage and improving the borrower’s payment are very noble, but it won’t happen on conforming lending. It will be an ALT A or subprime deal that would probably have terms as bad as the current loan, and it would prolong the inevitable.
The fact of the matter is that there have been and will continue to be a high amount of foreclosures.
I am all in favor of exhausting all efforts to to help people avoid foreclosure, but the high CLTV suboridination will not help many of them.

]]> By: Chris http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8309 Chris Fri, 21 Dec 2007 19:00:55 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8309 There are opitons; many banks will lend 80-90 with a subordinated second. we'll see more of that for full doc/good credit risks. There are opitons; many banks will lend 80-90 with a subordinated second. we’ll see more of that for full doc/good credit risks.

]]> By: Sniglet http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8307 Sniglet Fri, 21 Dec 2007 18:21:13 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8307 So what do people with a first mortgage that is too high do if the value of their home is less than the combined first and second mortgages? Is re-financing still feasible? What other options should they explore? So what do people with a first mortgage that is too high do if the value of their home is less than the combined first and second mortgages? Is re-financing still feasible? What other options should they explore?

]]> By: S Hallman http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8304 S Hallman Fri, 21 Dec 2007 17:13:56 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8304 sounds like common sense to me! how do you get the first approved with a cltv of 113% - don't most first mtg investors that you deal with have cltv requirements too even if it is not their money? sounds like common sense to me! how do you get the first approved with a cltv of 113% – don’t most first mtg investors that you deal with have cltv requirements too even if it is not their money?

]]> By: Chris http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/comment-page-1/#comment-8299 Chris Fri, 21 Dec 2007 16:40:50 +0000 http://blownmortgage.com/2007/12/21/your-first-mortgage-is-too-high-theres-a-second-what-do-you-do/#comment-8299 well, that deal needed a good lox and a poker attitude. well, that deal needed a good lox and a poker attitude.

]]>