.....................If you currently have a second mortgage, home equity loan, line of credit or anything that is a lien on your property, you will be required to have that loan subordinated or paid off when refinancing. And let me tell you, these bad boys are a nightmare! Currently I have been waiting over seventy five ( 75 ) days for one of these subordination agreements to be completed. Lenders move at their own speed. I have been told by Bank of America, Citi Mortgage and Citizens that they only take fax requests…..   oh and by the way, it will cost you upwards of a $250 subordination fee before the clock starts ticking.

I cannot begin to tell you about the nightmare of waiting for these agreements has become. Many of these resulting in rate lock extensions which get passed on to the borrowers. And these are lenders that currently own your second mortgage in the first place. Besides the fact most of them are recipients of millions in TARP money targeted to help homeowners like all of us. If you are one of the many frustrated with your current lender and their turn time with these subordination agreements, call and write your local and state politicians. I certainly have.

Be prepared for frustration and if possible, look into paying these loans off with a fixed rate first mortgage. Especially if you have a variable (adjustable) rate line of credit. These my friends are ticking time bombs…..   

For more advice on how to handle a refinance with a second mortgage involved call a high quality mortgage professional.

If you have been crushed by this economy – god bless you….

Lewis Poretz - Maryland Mortgage Advice