Quote from @Junior Francica: Quote from @Douglas Skipworth: Quote from @V.G Jason: Memphis is trash.

He has been in college since he was a junior in high school.

It appears that the seller receives a junior (2nd position) lien which encompasses the existing first lien which actually makes this a “wrap around” mortgage (technically), not a “subject to”, but the way it’s structured it works the same.Having a wrap DOES provide the seller with an avenue to foreclose if payments to the existing mortgage aren’t made.The fact that the buyer provides detailed information upfront and states that they are willing to consider and incorporate suggestions from the buyer that add to the buyer’s security may be an indication that the buyer is “legit”.  

Robert even then the bank and ALL junior lien holders have to approve the purchase price and what amounts they will release a lien for. 

John, the 2nd would be better off taking a discount on the lien because as Chad mentioned on his post, if the 1st mortgage is the one foreclosing and properly names the second in the foreclosure suit, once the property is sold at the auction any junior liens are dismissed/extinguished as a result of the foreclosure action taken by the first lien holder.

However, junior analysts at ratings agencies didn't look very deeply into these instruments and reasoned away the risk by saying that a large enough pool would mean that even if 1 or 2 borrowers defaulted, the overall security would still be fine. 

It's often simplest for a bank to go through the foreclosure process to clear title, particularly if there are junior liens.Look at the abstract and if you think it's something different let us know.

I'm 20 years old and a Junior at Pitt, living in Pittsburgh, PA.

Hey Everyone,I just joined BiggerPockets a few days ago, I'm 20 years old and a Junior at Pitt, living in Pittsburgh, PA.

Time is better spent hosting lunch-and-learns, being a junior achievement volunteer, putting on financial literacy courses at your church, starting web sites like BP, hosting podcasts to help others get ahead...practical stuff (where you may be able to help 1 out of 10 or 20 who are willing to fix the habits that keep them in the middle class).Class warfare creates more divide than it provides help or solutions.