How to Refinance a second MortgageRefinancing a Second Mortgage
Refinance only a second mortgage
Since the sub-prime fall out persists, many creditors are toughening their regulations for second mortgage and capital line liabilities. And even then, I see no good reasons why you shouldn't be able to refinance your second mortgage. When your present creditor does not approve, you should be able to find other creditors who are willing to provide you with good conditions and a good interest will.
First, you need to discuss it with several creditors. If you are talking to prospective creditors, make sure you ask for a Home Equity Line of credit (HELOC). Use the HELOC to repay your second mortgage, bearing in mind that the interest is lower (so your repayments are lower).
Talking to different creditors will also give you a better idea of your chance to successfully refinance only your second mortgage. Another proposal is to try to talk to your first mortgage lender for a workaround. From your side you have to be aggresive and you have to get in touch with each person several different ways until someone else makes the effort to hear you out.
Have a look at what kind of answers they can provide (if any). When you find out that even after talking to several creditors and there is no answer, you will have no option but to invest your first mortgage with the second in a unique one. Creditors and service providers do not like to exclude mortgage loans.
Compulsory auctions are more expensive than they can take back, so that creditors only carry out a compulsory auction if they limit the loss on a defaulting credit. In case landlords are in arrears with payment, the creditors will most likely work with them to keep the loans up to date. Usually, if the landlord has always made prompt payment and had no serious failures, the creditor will be more susceptible than if the individual has a recording of undeclared delayed payment.