Piggybacks Arouse Interest - And Concern

RE:Piggybacks Arouse Interest - And Concern

Linda — Thu, 09 Aug 2007 11:00:00 GMT

From the lender's perspective, what makes piggyback loans less of a risk, that they can go without PMI? There are a lot of 80/20 loans out there, which is effectively the same as 100% financing, much easier for a borrower to walk away from. Is it just because the (1st) lender only had to put out 80% therefore has less to lose? From what I understand, the 2nd lender usually doesn't get anything from a foreclosure and has to file suit against the borrower, often BK, so these things may die anyway.

RE:Piggybacks Arouse Interest - And Concern

Austrian School — Thu, 14 Sep 2006 11:00:00 GMT

Instead of making insurance premiums tax deductable, why not make piggy back loans non-deductable. Better yet, ditch the whole HMD. People are financing all kinds of crap these days through their houses. The deduction is simply priced into the sales price since everyone gets it. So how does this make housing more affordable?

RE:Piggybacks Arouse Interest - And Concern

J.P.H. — Wed, 31 Aug 2005 11:00:00 GMT

So in terms of a foreclosure property bringing the full principal balance at auction, the lender is compensated, the insurer is out nothing, and Joe Previous Homeowner had paid out that extra anyhow.

RE:Piggybacks Arouse Interest - And Concern

dave — Thu, 25 Aug 2005 11:00:00 GMT

nice info. that may and can be used to educate buyers