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Why would I have to pay for a subordination agreement if a company owns both my 1st & 2nd mortgage and I'm in process of refi on

The 1st by Bs69z2_951_661 from Peabody, Massachusetts. Mar 16th 2013 Reply


Robert Oliveira (roberto)
#13 ranked lender in Massachusetts - 89 contributions

Hi even though the same banks owns them both they and all banks charge a fee to consider keeping the second open as it is a risk to them so they make a little bit of money to review and process paper work. It does stink that the banks do this but the banks make money no matter what. Call and or email me to discuss all your refinancing options and rates.

Mar 16th 2013
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Charlie Sparks (CharlieSparks)
#1 ranked lender in New Mexico - 399 contributions

I agree with Roberto that it does stink. But I believe it has more to do with the bank covering the cost (or part of it) of personnel and resources it takes to process the subordination. Salaries, office space, computers, supplies, etc. etc.

Mar 16th 2013
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Peter Costa (peter@easyappsmortgage.com)
#30 ranked lender in Massachusetts - 7 contributions

That's typical for lenders to charge a typical fee usually $200. Because your with both banks, I would talk with them and insist on the first giving you a credit back at closing if they don't just wave the fee all together. I hate when lenders nickel and dime clients. If you put up a stink with the first, they will credit it to you cause they know you can go anywhere else. Everything is negotiable lol good luck, let me know how you make out

Mar 16th 2013
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Chris Couchon (chrisc)
#33 ranked lender in Massachusetts - 11 contributions

I agree to disagree. We do No cost 2nd mortgages for Randolph Savings bank customers on a consistent basis, and they don't have to ask! Unless your current lender is holding a gun to your head go somewhere else. No offense intended..Chris Couchon Randolph Savings Bank ccouchon@randolphsavings.com

Mar 16th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

Great question... Ask them. Sounds to me simply like another one of the many ways banks are always dipping into your pocket.... Fees, fees, fees.... But, it does take someone to process the paperwork, and that someone gets paid, needs an office, etc.

Mar 17th 2013
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