Thank you for your kind words. No, I do not have an office in San Diego but have opportunities for affiliates in many cities; I think it may be against the rules to discuss in this forum. For a second lien, as with any lien, a homeowner offers collateral in the form of assets. In the case of default, lien holders generally renegotiate terms, but they have the right to sell the collateral to recover. Second lien holders are second in line to recover money from a collateral sell-off, behind senior (first-lien) holders but ahead of unsecured debt. In a short sale the second, third… are where the BIG money is made. I typically offer 10-15% for the payoff for junior liens. If you are a good guy in the business you negotiate terms so for short pay the lien holder does not have a deficiency judgment. Deficiency judgments in many jurisdictions are determined by “fair value” legislation. This requires the deficiency to be calculated using the difference between the mortgage debt and the fair value of the real estate. [email protected]
