home mortgages

Second Mortgages, no problem

File this under a WTF.

Anybody else getting the feeling of being overwhelmed by the amount of crap coming out of Washington D. C.?

Buried deep in the pages of the current Obama Mortgage Modification Plan is this information.

paragraph vi. Second Liens: While eligibly loan modifications will not require any participation by second lien holders, the program will include additional incentives to extinguish second liens on loans modified under the program in order to reduce the overall indebtedness of the borrower and improve loan performance. Servicers will be eligible to receive compensation when they contact second lien holders and extinguish valid junior liens. Servicers will be reimbursed for the release according to the specified schedule, and will also receive an extra $250 for obtaining a release of a valid second lien.