Quote:
Originally Posted by berettafan
So nothing new here?
I know there has been a lot of talk about subprime loans defaulting but this seems like it would be yet another problem all together.
part of what surprised me about the story i related was that the houses in question were listed via MLS and were not forced auction properties. i would have thought this to be a rare thing.
Rick is the situation different if the same bank holds the first and second? I would guess it isn't but am curious just the same.
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It depends on who bought the loan. The same loan originator could write the first and second mortgage, sell off the first to one investor, and the second to another. Also, the mortgage insurance company can be a factor on the amount writtten down since they may have to pay a claim.