Junior vs. Senior Lien


#1

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.


#2

Per the terms of the FHA Home Affordable Modification Program, the Loan Purpose states:

"FHA-HAMP mortgages are required to have a lower monthly principal and interest payment than the unmodified FHA-insured mortgage and are made without an appraisal.

** All existing subordinate financing must be subordinated to maintain the first lien priority of the HAMP mortgage. For more information, please see ML 2003-19. "