New housing bill & 2nd mortgages

[Mike]

As you guys know many of the loans in default in states like California, Nevada, and Arizona consist of Senior & Junior loans ie: 80/20's. After reading the housing bill that was signed this morning what is your interpretation with respect to junior liens? If FHA will only refinance the prop at 90% LTV there certainly will NOT be anything left for the junior lienholders. The junior lienholders are not simply going to roll over and allow their liens to be stripped from the the property or file a lien release for no compensation. There's nothing in the bill about the primary & secondary banks working together to agree upon a mutually acceptable sum paid to the junior lienholders. As I read the the housing bill in Title IV Hope for Homeowners I see the junior subordinated liens must be satisfiled. So, are all struggling homeowners still going to have to pay their 2nd mortgages BEFORE they can even think about going to FHA for a refi?I feel this is a crucial question that needs to be adressed.