bad credit second mortgage, home equity line of credit. Many mortgage investors are of the opinion that big banks had done little to extend financial help to borrowers in order to refinance second mortgage. As a result, homeowners who hold second mortgages continued to remain in debts despite securing a mortgage refinance with a bad credit by Owings more on their houses than its current value. Many mortgage investors are of the opinion that big banks had done little to extend financial help to borrowers in order to refinance second mortgages. The response comes amidst news that the four premier lending institutions such as Bank of America, Citigroup, Wells Fargo and JPMorgan Chase & co. registered notable profits in the first quarter of 2009.
Typically, the banks modified the first debt mortgages quite aggressively and most of the massive investment in the home equity loans as well as home equity lines of credit which attracted a lot of servicing fees. Almost 40% of the home mortgages are serviced by these four banks. As a result, homeowners who hold second mortgages continued to remain in debts despite securing a bad credit second mortgage by owing more on their houses than its current value. While all the four banks are shifting the mortgage losses on the second lien to private investors, there is a contention that federal loan modification programs such as FHA mortgage refinance or even making home affordable program (HAMP) have actually contributed to improving cash flows of these banks with reference to second mortgages and all this is at the expense of the first home mortgage loan. This means the banks are deferring the immediately recognizable losses involved in a foreclosure, short sale or short duration loans like home equity line of credit.
Hence, all the four big banks need to specify the terms of such particular second lien modifications wherein the first and second liens are on the same property. This could be pertinent as all these of institutions are already participants in the government backed second lien modification program under the home affordability loan modification program or HAMP. But what does that mean to the homeowner with second mortgage debts? It is very much imperative for distressed homeowners who are faced with financial hardships because of second mortgage debts need to get expert guidance when they are out to explore various bad credit mortgage refinance options. (A valuable related resource: Crimson Education ). This could provide them the much desired assistance required to understand the entire process of second mortgage home refinance solutions. There are many professional services that offer active online help to struggling house maker. But make sure that you choose a reputed service providers like. by doing so you could be helped to secure a second mortgage rate by comparing quotes offered by different second mortgage home loan lenders. This could make your finance solution very much affordable and favorable to satisfy your financial needs and requirements.