Hi everyone,I'm a junior lender on a property, and my attorney is advising me to buy out the first lender so that I can foreclose on the property myself.

I am a 20 year old college student at Purdue University, currently completing my 2nd semester of my Junior year.

The appraisal was the longest hold up but the junior loan officer we were assigned seems to have zero idea what he is doing and zero sense of urgency...

So the problem is you wont be able to source the down payment as coming from the seller (most likely), but you can certainly add as many junior lienholders as you like, after the fact.

So if the LP's have enough cash they simply pay the loan off and own it free and clear.. but the size of the deals are so large raising cash to pay off debt simply is not realistic at all so if the property goes into default your junior position investors find themselves wiped out.Further more thats why a debt fund like Chris has can be a good choice for the very conservative investor..

I sure there is more but I am equally sure its quite rare.. reason is all the junior liens that got wiped out in the sale reattach.

Some lenders would raise the 20% with private investors through PPMs or unsecrued notes bank does not allow junior loans.

Gap funding or junior position funding is highly risky. your team has no real money in the deal..

In addition, a DIL does not automatically satisfy the underlying mortgage/DOT so if you accept a deed from the DIL grantee you may find a title insurer will require a release or sat of it before insuring.We have often used a “friendly” foreclosure instead of deed in lieu when we needed to “wipe out” liens junior to ours before taking property title.   

I have been branded as just no-fact Cryer to undermine my valid experience based on technically of junior partner, old company etc.