Second Liens Forgiven: Are You Kidding Me? - Realty Check with Diana Olick - CNBC.com: "paragraph vi. Second Liens: While eligibly loan modifications will not require any participation by second lien holders, the program will include additional incentives to extinguish second liens on loans modified under the program in order to reduce the overall indebtedness of the borrower and improve loan performance. Servicers will be eligible to receive compensation when they contact second lien holders and extinguish valid junior liens. Servicers will be reimbursed for the release according to the specified schedule, and will also receive an extra $250 for obtaining a release of a valid second lien."
Not only is the government going to pay off second liens they will add $250.00 above and beyond for any financial institution to do so.
Everyone wins ... except taxpayers and responsible people.
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