How can I settle my second mortgage for less?

The longer the loan is unpaid, the greater your negotiating power.

Contact the lender to discuss the debt. Begin the settlement process by expressing an interest in paying the debt.
Make an offer.
Remind the lender you know your rights.
Put any agreement in writing.

Does a junior lien affect your credit?

Will a lien show up on a credit report? In short, consensual liens do not adversely affect your credit as long as repayment terms are satisfied. Statutory and judgment liens have a negative impact on your credit score and report, and they impact your ability to obtain financing in the future.

What is a silent second lien?

The second lien becomes “silent” when, pursuant to the terms of an intercreditor agreement or like document, the second lienholder agrees to give up many of the rights it has as a second lienholder upon an event of default or in the event of a bankruptcy case commenced by or against the borrower.

What is the difference between first lien and second lien?

Second-lien debt is borrowing that occurs after a first lien is already in place. It subsequently refers to the ranking of the debt in the event of a bankruptcy and liquidation as coming after first-lien debt is fully repaid. Another term for this type of debt security is junior or subordinated debt.

What is a 4% silent second?

A silent second mortgage is a second mortgage placed on an asset (such as a home) for down payment funds that are not disclosed to the original lender on the first mortgage. The second mortgage is called “silent” because the borrower does not disclose its existence to the original mortgage lender.

Can a second mortgage be used as a down payment?

Lenders won’t allow you to take out a home equity loan or line of credit to make a down payment on a second home.

Can I borrow against my house to buy another house?

Yes. If you are able to raise enough money from remortgaging your home to pay cash for a second property, then this is certainly possible. In fact, you might find that maximising borrowing on your current mortgage is cheaper than a buy to let or second home mortgage.