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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Huh? Care to restate your query more clearly? (NT) Posted by Kristine-CA on November 05, 2009 at 9:04 AM In Reply to: Re: Huh? Care to restate your query more clearly? (NT) posted by Mark H. on November 05, 2009 at 8:38 AM The second is....junior. The jr. lien holder does have "protection": He can foreclose on the 2nd, there by becoming the owner (again). He then owns the property and has taken it with the 1st, which remains in place. If the 1st is already in default, he can bring the payment current and then foreclose on the 2nd. Looking at situations like this, in this market, can be a very good lesson in pros and cons of lending in 2nd position. Carrying back a second will help get the property sold, but it's not always so good for getting paid. In a declining market it will be the rare seller carry back 2nd lien holder that will save a property from a foreclosure on the 1st. : : The owner provided a second, after the first by the mortage company. Something is nagging me from a prior discussion I cannot find...i.e. : : : Does the owner have second priority, even if they provided the down payment to the owner for his first? : Sorry. My question is "Does the seller, if he provides a second deed of trust (loan) to the buyer get any special consideration over the bank that provides the first? In other words, is the seller in a jr position to the bank?" : I would assume that nothing changes in loan priority. IE if the bank forecloses, the 2nd has no protection and is wiped off. Correct? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : The second is....junior. The jr. lien holder does have "protection": He can foreclose on the 2nd, there by becoming the owner (again). He then owns the property and has taken it with the 1st, which remains in place. If the 1st is already in default, he can bring the payment current and then foreclose on the 2nd. : Looking at situations like this, in this market, can be a very good lesson in pros and cons of lending in 2nd position. Carrying back a second will help get the property sold, but it's not always so good for getting paid. In a declining market it will be the rare seller carry back 2nd lien holder that will save a property from a foreclosure on the 1st. : : : : The owner provided a second, after the first by the mortage company. Something is nagging me from a prior discussion I cannot find...i.e. : : : : Does the owner have second priority, even if they provided the down payment to the owner for his first? : : Sorry. My question is "Does the seller, if he provides a second deed of trust (loan) to the buyer get any special consideration over the bank that provides the first? In other words, is the seller in a jr position to the bank?" : : I would assume that nothing changes in loan priority. IE if the bank forecloses, the 2nd has no protection and is wiped off. Correct? [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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