A second mortgage is a secured loan that uses the borrower's home as collateral. Although the lender is a junior lien holder, it has the right to foreclose on the property if a payment or payments are not made. However, it may be possible to strip the lien through bankruptcy. Those who are filing for Chapter 13 bankruptcy may be able to ask that the lien be stripped after the debt repayment plan has been completed.
Homeowners in Delaware may be wondering if now is the right time to refinance their houses. Interest rates hit a historic low in 2012, and the rates are still low enough to make refinancing tempting for many. However, if a person decides to refinance, there are some drawbacks worth considering.
Refinancing a mortgage loan is not always an easy decision. Homeowners must be certain that the costs of doing a refinance will be made up by the reduced interest rate on the new loan. When the numbers look right, though, it can be a great opportunity.