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My second mortgage person. Will not let me refinance my first. He's got me over a barrel. How can I elimin this ass who's got me

by cubbiefan1111898 from Indianapolis, Indiana. Apr 13th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

You should check with a local attorney or law advice web site.. certain states have mandatory re-subordination requirements.. so your 2nd mortgage lender cannot hold you hostage...if it turns out that Indiana does not have such a law, then you could ask the holder of the 2nd to refinance your first.. so long as they are competitive, it might be worth it.. Also, you could just pay them off, or try finding another lender to refinance your 2nd only, ( assuming they allow re-subordination) and then refinance the 1st after.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Apr 13th 2015
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 156 contributions

A first or second mortgage is in first or second position simply by WHEN the lien was placed on the home. A first mortgage was in place before the second. So, when you refinance, the second mortgage must agree to "subordinate" to another mortgage. This means they are allowing the another mortgage to be placed in from of them. (Remember the second mortgage is a lien holder before the refinance which would place them in first position if the current first were paid off - I know, a little confusing). Second mortgages normally will allow you to refinance IF, and only if, it does not put them in a worse position. Some situations that a second mortgage may now allow a subordination are: If the value of your home has decreased or if you are paying off additional debt (other than just the first mortgage). Really the only way to get rid of that second is to pay it off or to warp the second into the first mortgage.

Apr 14th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

They likely make the decision based on whether there is an advantage to them, basd on current circumstances. If your new mortgage will be for more than the current balance that could be a reason they will not agree to subordinate (explained by Ron previously). Might be worth asking if there is any modification to your agreement for that mortgage (like a higher payment) that might get them to reconsider. Or, include that mortgage in the new one.

Apr 14th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

PS> They may be using that as leverage to get you to pay them off. Sometimes it is possible to refinance a 2nd mortgage to a new one. Usually depends on how much you will owe on the home, total, as a % of the current value. Generally that is a maximum of 90-95% of the current value (total of both the first and any 2nd mortgage.)

Apr 14th 2015
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