A report from real estate research firm CoreLogic has documented what many credit unions have already discovered: a homeowner that has taken out a second mortgage on their home is significantly more likely to owe more on their home than it is now worth.
Credit unions have often faced increased risks of foreclosures from this phenomenon as the lender on the original mortgage which the homeowner then supplemented with another mortgage from another lender.
The credit union faces a foreclosure when the homeowner cannot pay make payments on the two notes or walks away from the property entirely.
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