Mortgage refinance made troublesome

The residential real estate markets in many areas of the country are plodding along in high weeds. When that is combined with a home loan industry that is grappling with serious balance sheet tremors, the situation is ripe for a healthy head scratching for a homeowner who needs to refinance his explosive mortgage. As if that isn't enough reason to take a deep breath, there is another new, potentially crippling twist to the scenario.

The refinance process can turn murky, even impossible, if a second mortgage is involved. It usually is subordinate to the 1st loan, so in case of a default the 1st loan is paid off first and what's left goes to satisfy the second. Clearly the second mortgage holder takes a bath if the sales proceeds aren't enough. To read the entire article, please click on the link in this paragraph.