I was told that my second mortgage would be forgiven after living in my home for 5 years. Why is it still owed?
There has been some miscommunication regarding MFA’s Second Mortgage Loans being forgivable after a period of 5 or 10 years. Generally, Your loan is due on sale, transfer or refinance of the property. If there is a forgivable provision on your loan, it will be stated in the Note and Mortgage or Award and Restrictive Covenant you signed at closing. If there is not a "forgiveness" stipulation, the debt remains due. Contact our MFA Mortgage Servicing Department (505) 843-6882 to discuss the specific terms of your loan regarding "forgiveness".
