Legal Question in Real Estate Law in New York

Help with the 2nd mortgage holder

We have been approved to refinance our home from an arm to a fixed mortgage the problem is we have a second mortgage with the seller that we have never been late with payment on. the 2nd is valued around 8.000 and he will not subordinate the loan he wants to be paid off but the appriasal will only cover the first mortgage. because of this we will lose our home when the mortgage adjusts. what can we do to get him to subordinate and stay 2nd mortgage holder so we can refinance our home. we have written him and even gave a notorized letter that he will stay as second deed holder and given him a copy of the apprasal. he will not even answer our calls now. is there someway we can take him to court? what can we do?


Asked on 8/14/08, 11:05 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Help with the 2nd mortgage holder

This is one of the problems that the current mortgage faisco has created. Not having read any documents (first or second mortgage), it appears the second mortgage holder is within his rights not to issue a subordination, although this is to his disadvatage since he could lose everything in a foreclosure. My suggestion is rather than go through a new refinancing, which could upset things, is to see if the first mortgage holder is just willing to change it Note and the interest rate, which should not require the filing of a new Mortgage document. Also, maybe the new financing source could purchase the old loan and change the note. Again, this should not require a new filing.

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Answered on 8/14/08, 11:29 am


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