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To: Gary105 who wrote (2528)	9/3/1998 1:44:00 AM
From: PaperChase	Respond to of 18998

>>Plus because its secured by second mortgage on house (not as good as first mortgage but far better than credit card debt or personal line of credit)<< Yes, this is true. However, these second mortagage lenders tend to be aggressive loose cannons with some lending up to 125% of the value of the home thru patsy appraisers etc. In general, these second mortgage players are dealing with heavily indebted individuals. But with bank accounting methods being the most "corrupt" accounting around, I would consider FP at least a potential Cityscape Jr.

To: Gary105 who wrote (2528)	9/3/1998 7:06:00 AM
From: yard_man	Respond to of 18998

>>but far better than credit card debt or personal line of credit<< From the standpoint of whom? Certainly from the standpoint of those making payments, but we are talking about those collecting the payments. Some of credit card debt is paid every month, some not -- the rates charged are high. Consolidated credit under a second mortgage indicates that the individuals are certainly extended to the point they are not paying off the balance at the end of every month, they are in hock for part of their home equity (more leveraged than average), and there is little to no risk premium on top because it is secured with the house. Being secured with the house sounds like less risk, but many of these houses require both spouses to be working to make the payments -- any significant downturn in the economy and I doubt that "extra" security would be worth much -- perhaps just a little longer to default?