In today’s upside-down market, homeowners who are stuck with under-water mortgages are seeking principal reductions. Many second mortgage lenders are actually lowering the principal for these borrowers because in many cases it is a better option than taking over the property from a foreclosure or surrender. Loan modification sthat simply lower the interest rate are often not enough for homeowners residing in these heavily depreciated regions like Southern California, Las Vegas and Phoenix, Arizona. According to Citi’s regulatory filings, about 28% of its first mortgages are now worth more than the underlying assets, along with about 42% of their second mortgages. Read the original article > Obama Second Mortgage Loan Modification Plan Failing
Tags: Home Affordable Modification Program, principal reductions, second mortgage loans