If you're one of those buyers who bought with a first and second trust (and avoided Private Mortgage Insurance - or PMI - payments), you probably thought you were doing the smart thing. And just about all of us thought it was the smart thing to do.

Until one of the banks who routinely holds 2nd trusts pulled a whammy on us all.

Usually when a homeowner goes to refinance his first trust loan, the second trust hold routinely agrees to remain in second position. Position is important when a property forecloses, because the lien holder in first position gets paid first.

An article by syndicated columnist Ken Harney reports that National City Mortgage has put a halt to those routine agreements. Which means that anyone with a second trust held by National City Mortgage is going to have a hell of a time refinancing his first trust loan, regardless of who the first trust mortgage company is.

(C) Susan Pruden.