Subprime 2nd mortgage 2007

[Kaleb Silva]

I am looking for some guidance on how to proceed with a subprime second mortgage from 2006. After the loan was deemed illegal my parents have had every payment deferred. The mortgage company “greenpoint mortgage” was ceased and acquired by capital one. I am a loan officer myself so I have a good understanding of lending but have not dealt with this type of situation.

I requested a pay off online from the current loan servicer and they still have the interest calculated. Is this correct? I have also heard of you being able to negotiate a cash pay off, is that the best option to get the property free and clear?

Do subprime loans that have been deemed illegal have no option but to take subordination?

I ask because, they were able to refinance once after but it was still before 2008-2009. How would this 2nd mortgage effect a cash out refi or HELOC today?

Thank you in advance!