2nd's drying up?

[Brett Synicky]

I know many of you are into buying delinquent and/or re-performing 2nd trust deeds but isn't that eventually going to dry up since there isn't a bank out there that's offered one since 2008?

[Matt Devincenzo]

Originally posted by Brett Synicky:

I know many of you are into buying delinquent and/or re-performing 2nd trust deeds but isn't that eventually going to dry up since there isn't a bank out there that's offered one since 2008?

I think you're just thinking about 2nds for a DP contribution like was happening back then. There are other scenarios that exist where a 2nd could get recorded. HELOC's are probably one of the most common that regularly occur. So while I could see the supply of NPN 2nds dwindling as foreclosures and equity start to take them out , I doubt you ever see them disappear.