Foreclosure in Marigny>Question Details

Jfaulk, Home Buyer in New Orleans, LA

what is a soft second mortgage?

Asked by Jfaulk, New Orleans, LA Mon Dec 17, 2012

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This question was asked from this property: http://www.trulia.com/foreclosure/3092402709--N-Rampart-St-N…

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Lesley Poche’s answer
A soft second mortgage is a second mortgage typically offered by a city or parish that will be forgiven (i.e., you don't have to pay it back) if certain conditions are met. Here is the link to the Finance Authority of New Orleans' website, where you can find out the details.

http://financeauthority.org/


Hope you find this helpful!
0 votes Thank Flag Link Tue Dec 18, 2012
You can get some more details on the city website: http://new.nola.gov/softseconds/
0 votes Thank Flag Link Tue Dec 18, 2012
Soft second mortgage, is a second mortgage with payments that are forgiven, deferred, or subsidized in some fashion, generally until resale of the mortgaged property.
Example, a home for sale for $100K, you qualify for $50K, a second mortgage is granted, based on you remaining in the home for a certain number of years, making timely, payments on your first mortgage. At the end of the #of years, your second mortgage is forgiven. You never have to pay on it as long as you have remained in the home.
0 votes Thank Flag Link Tue Dec 18, 2012
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