Why 'silent' second mortgages are so risky

The term "silent second" is used to describe self-serving or perhaps fraudulent schemes where house sellers accept second mortgages as part of a sale transaction, without the full knowledge of the first mortgage lender. The "silence" refers to the absence of full disclosure to the first mortgage lender.

The smaller of the frauds arises when the second mortgage replaces part or all of a down payment. more...

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