I am looking at a foreclosure property with the following history:
2012-Original Deed of Trust ~$250k
6/2015-Subordinate Deed of Trust for FHA HAMP Loan Modification. This is the interest free “Silent Second” that will become due once the loan matures. ~$50k
7/2015- FHA HAMP Loan Modification. This modifies the remaining balance to provide a more favorable payment. ~$200k
Does a modification reset the seniority of a lien meaning that the $50k lien would now be senior to the $200k lien since it was signed prior to the $200k lien?
Let me know if you need more information.