I was able to lend through banks because I've been working since my junior year of high school and could show income.Think outside the box!

Your question(s) concern the perspective of a junior lien holder as to how s/he is affected when senior mortgage goes to foreclosure sale.Generally, Junior lien holders are "wiped off" but the debt is not wiped out and remains, but unsecured.As a junior lien holder, remedies include:1) advancing funds to cure first mortgage in order to protect position;2) hoping for a forced sale that generates sufficient surplus (overbid) funds to pay junior debt;3) litigation to set aside sale due to claim of deficient noticing to junior bene (lien holder)Junior lien holders' claims for over bids are typically "pro-tanto" in nature, in that they are paid according to order of recordation, absent subordination agreement that would change order of lien position.If you are considering investing in junior trust deeds or mortgages, be sure to study title laws specific to the state(s) you are considering buying notes in.  

Had a regular job in junior high cleaning horse stables. 

Just offer the funding source a deed of trust in first position with no junior liens allowed.

J Scott, may I politely suggest that you go over to your local junior college and take a couple of semesters of Economics.

Here is a list of some options you can take advantage of.California Homebuyer's Downpayment Assistance Program (CHDAP). which is designed to provide a deferred payment, simple interest rate junior loan of an amount up to three percent(3%) of the sales price or appraised value, whichever is less.

Kasha I assume you are making a simple mistake that many make when get third party releases.You might have authorization to talk to the bank but do not for the attorney.For that you would need a separate authorization to release.When I did residential short sales years ago I would have one form for third party release and would have all junior lien holders listed along with senior and the attorneys.This way I could send the same document off without having to track down the seller each time for more signatures.A short sale takes awhile to complete.Do you have cash or do you need some financing ??

I know the renewed Hardest Hit Funds works for 1st liens, does anyone know, or have tried, to see if it will work on Junior liens?

The owner was trying to negotiate with the second lender for a long time for a better settlement; she didn't believe a junior lien would foreclose on her condo. 

I took architecture classes at a junior college in CAD and hand drawn courses and was immediately in love, then started drawing little projects from friends and fam before I did my own house.