Report: Plan For Extinguishing Seconds To Come

ent Obama's Making Home Affordable program has had one very glaring challenge since its details were announced in March: second liens. According to a [u][link=http://www.reuters.com/article/GCA-Housing/idUSTRE5353YG20090406]Reuters report[/link] [/u] that cites an unnamed Treasury official, the administration plans to soon release details on how seconds will be managed going forward. Making Home Affordable has encouraged servicers to negotiate ways to remove seconds, but has not yet provided much instruction on how to accomplish that goal. The program's guidelines released last month for servicers note that "to reduce the borrower's overall indebtedness and improve loan performance, additional incentives will be provided to extinguish junior liens on homes with first-lien loans that are modified under the program." SOURCE:

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