Going to foreclosure

[Dmitry Semenov]

Hi all,

I have a 1st position loan secured by property (non-owner occupied rental, WA state). This property also has 2nd lien, brokered by the same broker. I'd like to keep relationship with the broker, so I also don't want 2nd to be screwed.

Both 1st and 2nd in default, so we are going to foreclosure. Broker wants to foreclosure on 2nd, so it wouldn't get wiped out.

Both 1st and 2nd are at 65% LTV, so as a 1st I feel pretty safe here.

What are the pros/cons for me as a 1st lien holder if the 2nd goes to foreclosure? Are there any risks for the 1st?