Buying Jr Lien (emc/jpmc 2nd Mort) Need Guidance

[Justin Pandelo]

Hey all,

I have become a pretty busy REO Broker here in NJ and am up to my ears in GMAC defaulted properties being listed across the great state of NJ. Gotta love having a RE Lic & Investing. I had a question on the possibility of buying a junior lien and I must admit I am unsure where to start. I have a regular resale/non foreclosure/non ss listing for $2.5M & change. It is pending foreclosure sale on a month to month basis as it is in a forebearance agreement currently. The 1st is close to $900k and the 2nd is around $232k. I have come across some interesting reading but am unsure if I can use the strategy here. Looking to buy discounted mortgage note on the 2nd which is 2 months behind and pending foreclosure late September. No adjournments by owner have been used yet. Was going to see if I could buy the 2nd through my LLC (formed after using great advice here, thanks BTW) at a deep discount, and then obviously be compensated for the full $232k default amount at closing (have a potential offer coming in soon). Was hearing many 2nd position lien holders will sell their position off last minute thinking if the 1st forecloses they lose it all. Wanted to apply the strategy here. Bonus is collecting a commission on this of 3% on top of that. Is there any chance I can make this theory a reality? Also who in EMC would I contact? Or would I contact JPMC? Which Dept do I ask for? Need advise quick, please help me guys/gals. May even sweeten this with a consult fee for anyone willing to step up and mentor me through this process. Thanks again to all for their previous great advice here.

J