They could either attach a silent 2nd lien or write it off.
An old co-worker of mine was offered foregiveness on his entire 2nd. They were willing to make it a silent 2nd, which he’d have to pay off if/when he sold the home. He didn’t like that option. I don’t know the final outcome(what decision he made) and I can’t remember who the lender was.
That is going to be a huge hit for BofA. I wonder if they will use the income stated on the 1003, or if they will requalify them on their current real income. Don’t forget that CW did a ton of stated option ARM’s and the minimum payment(1%) was used to qualify them.
