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Anyone have recent experience with subordinating a second mortgage from Bank Of America?

I have a first and second mortgage with BofA and am thinking of refinancing throught Freddie Mac relief refi Open Access. If I go to another lender to refi the first, will BofA subordinate the second? What are their requirements: DTI, LTV,CLTV etc? How long do they take to complete subordination?

Thanks
  • November 25 2009 - Rockville
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Answers (6)

I just had several subordinations last month with BofA.  It took less than 2 weeks to receive the subordination agreement back from them on all cases.  Typically their main concern is that they do not want to see the first lien increasing form the initial loan as that puts their second lien at a higher risk.  Your CLTV will need to be at 95% or less and they will not be concerned with the DTI as this is a subordination.  Your first lien lender will care about that.
  • November 26 2009
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So is the cltv limit for subordination at BofA 80% even if the first is being refinanced under the Homeowners Affordability HARP plan? We're not planning to take cash out.

Sridhar
  • November 26 2009
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it will depend on ltv and cltv....they have cut those back to 80% and if you are taking cash out it is lower.

  • November 26 2009
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Profile picture for Justin Kennedy
to my knowledge, they will only subordinate to with 80% cltv (combined loan to value), DTI (debt to income ratio) of max 50% and credit score low as 680. Granted you may get exception if there is reason to believe it will improve your situation and reducee the risk of default . email me i will send you a email contact at thier department that i have worked with in the past, he may be able to provide some clarity.
  • November 25 2009
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Thanks for the response. I got the forms but it doesn't say whether they have any Debt to income limits or LTV/CLTV limits for subordination. Our first is at $405K, second is $53K. Home value probably around  $440K - $450K.

So CLTV is over 100%. Any thoughts if they will subordinate?

Thanks
  • November 25 2009
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Profile picture for Justin Kennedy
yes, service was good with BofA. fee was $150.00 upfront
you can order the forms and matrix via thier fax on demand 866-384-2124
  • November 25 2009
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