Different Lenders for Your 1st and 2nd Mortgage

by admin on March 2, 2009

If you have different companies that are providing you a 1st and 2nd mortgage (usually a home equity line of credit) then you need to get permission from both before you can get a loan modification on the 1st mortgage. Conceptually you would think that your 2nd mortgage owner would be happy that you are given a break on the interest rate or the number of years the loan is paid over, but getting a loan mod on the first mortgage also raises a few red flags.

For example if you have a $200,000 primary mortgage with Chase and a $60,000 HELOC with Wells Fargo, you would need to contact Wells Fargo to get their approval before you get a loan modification done with Chase on the $200,000 loan. When you are sending in your hardship letter and communicating with Chase about your primary loan modification, be upfront with them and let them know you also have the HELOC with Wells Fargo. Chase may have a certain procedure you need to follow and it makes sense to hear it directly from them so you get it right the first time.

If you have a 1st and 2nd mortgage loan with the same lender, it should be a much easier process in getting a loan mod done on the 1st or the 2nd mortgage. Be clear with your lender and explain what you want and you should have a much easier time getting it done.

Leave a Comment

Previous post:

Next post: