Thursday October 22, 2009, 8:21 am
The issue is "why isn't there a housing recovery"? The answer is that congress rushed the legislation and made several fatal flaws in their legislation to help individual homeowners. All of the programs only deal with the 1st mortgage. The second mortgage is left unchanged and the mortgage company that holds the second must agree to any changes to the 1st mortgage.

Congress has made it completely nuts for anyone to borrow using anything other than a 1st or 2nd mortgage because those are the only loans where they allow an individual can deduct the interest. As a result, MOST homeowners who need a loan modification are unable to benefit from the "feel good" legislation of this congress. This one isn't a lobbying issue. It is a competence issue, the competence of our congress, now and in the past.

Still, good post, not shouting at you. Frustrated that I can't find articles that cover this important issue that most people are not aware of.

Thursday October 22, 2009, 2:01 pm
I understand your frustration Paul. But in all honesty it depends on your current lender. My mortgage company modified my 1st and 2nd with very affordable rates. My son called his lender and told them he felt he needed a modification due to the loss of value in his property which they are working on as we speak. This is why you see consumers seeking other outlets for modification (usually con artist) because these bailed out lenders have their money and have no interest in rescuing the consumers they lulled into fast and sleazy loans (Countrywides fast and easy program)

Friday October 23, 2009, 3:43 am
If your first and second are with the same lender, the lender might be willing to modify both. If your lenders are different, the second mortgager is not under any obligation or pressure from any Federal plan to help. They might choose to, but the legislation to help the borrower does not apply to second mortgage companies. The highly touted home rescue plans are not working because most people have second mortgages and, with some exceptions, most of these companies are not modifying second mortgages. Foreclosures are increasing.

I'm glad that you have had success with yours!

Friday October 23, 2009, 11:31 am
One must always save for a rainy day.. this is so important in this day and age where we live ina worl dof uncertainity and insecurity