Boston Globe
Piggyback loans pose big problem for housing sector
Lisa Wright is among the nearly 40 percent of Massachusetts home buyers who bought houses in 2005 with two separate loans, according to new data released by the Federal Reserve Bank of Boston.
Three years later, the practice has virtually stopped. But Wright and others who signed two mortgage notes to finance high-priced homes at the height of the housing market now find themselves facing problems as they seek to reduce payments and avoid foreclosure. Because two lenders often are involved, making any changes in such loans is especially complicated - for banks and borrowers. Read More...
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