The auction was for the HOA lien, which was probably junior to the first. 

Regardless, if the property was included in the BK, the trustee is another player in the short sale, just like a junior lender.

Also, you can't do a pre-payment penalty on loans that are "higher-priced" as defined by the gov as 1.5% above APOR on first liens or 3.5% above APOR on junior liens (which a wrap is).

Equity is the term used to describe the junior interests of an asset.

Buyer agrees to use best efforts to pay off existing loans that are in sellers name within five years of close of escrow.)Protection for the sellerBuyer will execute a quitclaim deed back to the seller, which is held in escrow unrecordedHow to protect the buyer in the chain of title and potential future creditors of the seller.For the buyers protection a lien of some percentage (I like to see at least 20%) of the purchase price in favor of the buyer executed by the seller will be recorded a "Sellers Performance Deed of Trust" The buyer will appear to be a juniors lender for public record purposes.The seller is protectedFor the sellers protection a reconveyance of said deed shall be executed by the buyer, which would be recorded in the event of a default upon request of the seller, which remains uncured for sixty (60) days upon written notice of default, has been mailed to the buyerThis would allow the management company to unilaterally remove buyers cloud on the title by using the pre-signed reconveyance if the default was not cured as outlined.You might be interested 1.

Could be by buying at foreclosure sale and bidding on a junior or HOA lien.

@Junior Salter if haven't already, check out podcast 70.

Hey Junior,I'm not seeing the 2% often in this market just based on what we've looked at - most of ours are falling a little over 1%.

Currently, I am a 21 year-old junior in college.

Currently, I am a 21 year-old junior in college.