The largest mortgage lender in the country announced last week that it is willing to lower or eliminate payments on second mortgages. This is great news for all homeowners that got sucked in 0% down mortgages, where they took out two separate loans, on for the down payment and one for the balance of the purchase price. One of the biggest issues in real estate right now is short sales, and often the sellers have a second mortgage. The holder of the second mortgage often wants to be fully paid, and can block a sale if they don't agree to the terms. For such a large lender as BofA to announce that it sees the issue, and is willing to change there policy is a large step forward. Now we just have to wait and see if this will speed up short sales, or prevent foreclosures.
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