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Primary Mortgage Lender Blocking 2nd Loan or Home Equity Loan

979 Views | 3 Replies | Last: 3 yr ago by jja79
Jimmy Conway
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Anyone heard of this?

I was looking at getting a 2nd on my house (quite a bit of equity) and was told by someone my primary lender may have a clause in there where they can call my note if I take on a 2nd loan or home equity line of credit. My primary lender is a big entity so it might take some jumping through hoops to check on this but in the meantime while I do, is this a common thing in lending?
aggiepaintrain
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AG
Your primary could be asked to sign a letter stating they are aware of the loan, they become more secure because for lender #2 to get paid they have to payoff the primary..

Who ever told you this was FOS.
SteveBott
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AG
I've never seen that call language in my lender's paperwork. The first lien lender will want in writing they maintain that first position but that's it.
jja79
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AG
2nd lien will subordinate and you move on.
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