HLS, I wasn’t thinking Mark was trying to get another FHA loan. I figured he may have spent the last few mos cleaning and fixing so he could possibly obtain an appraisal high enough to get OUT of his FHA purchase money (pm) mtg.
btw, you bring up a good point about subsequent mortgages (taken out after his pm mtg) being “recourse” and I agree that it is important for the borrower to understand that the lender of his refi mtg (even if for the same or lower amt than his pm mtg) could later come after him for the difference between what they could net in an REO sale and how much his delinquent loan balance was (in the event of foreclosure) vs whatever their pm lender could recover from an REO sale would have to satisfy them.
I don’t think too many borrowers really pay attn to this.
