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Loan Modification for two loans at once.

Hi,
I have two loans (ARM and 20yr fixed) on my home. This was done back in 2005 to avoid PMI. They are with two different banks (BOA and PNC). How do I go about doing a loan mod if one is an ARM and the other a Home equity loan?
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June 13 2010 - US
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Answers (2)

The second mortgage is not likely to be modified at all. Second lien holders are under no obligation to make a loan modification, and the first lien holder does not care about the second and does not need their approval to modify the first.

Most lenders who hold second lien positions have already written them off, so any amount they can obtain from a borrower is just icing on the cake.

While the second lien holder can make it a problem should you decide to sell the home as a short sale, or other wise try to refinance, they cannot stand in the way of a loan modification on the first mortgage.

Please visit [link removed by moderator] for additional information about qualifying for a loan modification.
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June 14 2010
Just do them at the same time and just keep good notes to keep both banks updated on what each other are doing.  Most of the time you will not see an approval on the 2nd mortgage modification until the 1st loan gets approved for a loan modification.  I would state to the 2nd mortgage lender that the 1st loan is what is giving you the most problems.  If you have the money I would really try to settle on the 2nd mortgage since I am seeing too many banks taking the settlement for 2nd mortgages up to 70% of the original loan balance.  If you need any help contact me by clicking on my name and visiting my blog! Good Luck!
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June 13 2010
 
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