Equity Line & Other Mortgages
- The second mortgage was used to get a home owner 100% financing usually at a high interest rate.
- They were collateralized by the home and at least in California are considered a chattel mortgage.
- The difference is important as an equity line is a personal liability and a mortgage is a chattel on the property.
In most cases, we can change negotiate the terms of these instruments. We communicate with the lender on the borrowers behalf to discuss options such as lowering the interest rate or settling for a fraction of what is owed.