Can second mortgages hurt the housing market recovery?
With second mortgages poised to reset over the next several years, a blogger for the Urban Institute poses the question, is there a ticking time bomb in the housing market?
Second mortgages, also known as Piggyback loans, were a staple during the housing boom. In 2007, outstanding second mortgages peaked at just over $1.1 trillion. Now, experts are considering whether or not the reset second mortgage payments will cause a monthly payment increase for many homeowners that may hurt the market.
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