Here is what some of us receive in mail, regarding 2nd mortgage, on a house, where bank understands they won't receive anything if it goes to foreclosure and only the 1st lien holder will recover (and even then, may be only partially).

So they offer borrower to pay 33% now in cash ...

Looks nice but I doubt if it worked for anyone. If someone has 52K cash to pay for second mortgage, that someone would spend it on fixing up things with first mortgage, all but it is very unlikely that the person in such a pre-foreclosure situation does have it.

What would look more making sense is to offer a lowered payment and/or decreased loan's principle amount, so to try get attention from the borrowers who can pay at least something monthly, but hoping to get anyone in such position be interested to give away $52K doesn't look for me as a popular decision to make.

Anyway, for what it worth, just see it as an example, 2nd lien holders are much more flexible and ready to do much more then the 1st lien holders and so this mailing is another proof to that. If you have National City 2nd and you are far behind on your payments, but, do want to save the house and modify/settle terms with everyone, call them up on this Opportunity Offer and see you qualify!

Before doing any big steps on 2nd mortgage, make sure you got through the article on 2nds, "Why Not Just Stop Paying Your Second Mortgage in California?" here along with other good ones.

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