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I have 2 loans for my home. An 80 loan and a subordinated 20 piggyback loan.
Lender for Loan 1 (80 loan) is different from Loan 2 (20 loan). They both used to be the same until I was able to refinance Loan 1 under HARP 2.0.
I owe more money on Loan 2 than I can afford to pay in the lump sum that would probably be required when the loan is over and I have just a few more years to go.
The Lender for Loan 2 (Bank of America) has been historically very difficult to work with or talk to about anything ever.
I can't just see BOA demanding to be paid in full after the 20 loan is done, but nothing that they do surprises me. I have asked them if they could refinance the 20 loan, but since my home is underwater they won't talk to me...even though they spam me endlessly with refinance offers.
What generally happens in a case like this? Do they just demand payment for the balance at the end of the loan and when I can't pay they just seek a judgment against me? I can't see them pushing to foreclose, since the proceeds of the foreclosure would just go to Lender 1 since the 2nd loan is subordinate...that's what I read anyways.
Nothing surprises me with BOA though.
I am inclined to ask Lender 1 if they would refinance my 2nd loan, but I don't know if there would be anything in them for it. If I explained that I won't be able to pay the 2nd in full when I am done, that should be incentive enough but explaining things that way never seems to work for me.
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