Readers ask: What Is A Junior Lender?

Junior Lender means the maker of any Junior Loan or beneficiary of any Junior Loan Deed of Trust.

What is a junior financing?

Junior Financing means any Indebtedness (other than any permitted intercompany Indebtedness owing to Holdings, the Borrower or any Restricted Subsidiary) that is contractually subordinated in right of payment to the Loan Document Obligations.

What is junior lienholder?

When you take out a mortgage loan, the lender acquires a lien or financial stake in your property that he can attempt to claim by foreclosure if you default on the mortgage. If you take out a second mortgage–also known as a home equity loan– that lender becomes a junior lienholder, with the first mortgage as senior.

What is a junior interest?

Junior Interest means a performing junior participation interest in a stabilized or transitional senior commercial, multifamily fixed or floating rate mortgage loan secured by a first lien on multifamily and commercial properties or a subordinate portion of a Senior Mortgage Loan evidenced by a Junior Certificate.

What power do junior lien holders have?

What power do junior lien holders have? A junior lienholder has the right to start foreclosure herself, but the senior lienholder will still be paid first. If the property owner wants a short sale—selling the house before it’s foreclosed on, in hopes of getting a better deal—all the lienholders must agree to this.

Is junior debt secured?

It is usually secured debt with collateral; however, it can also be unsecured with specific provisions for repayment seniority. Subordinated debt follows senior debt and has its own repayment terms. Generally, junior debt and subordinated debt is unsecured debt that is not backed by collateral.

Who provides junior debt?

Generally, Junior debt holders are the parent company of the company, shareholders of the company or the general public, etc. Mostly large banks provide Senior debt with a collateral security to large organizations. Generally, small banks with no collateral security provide Junior debt to smaller organizations.

What happens to the first mortgage if a junior lender forecloses and sells the house at auction?

When a junior lienholder forecloses, a senior lienholder recovers nothing from the sale proceeds. But the senior lien remains intact and the foreclosure buyer takes title to the property subject to the senior lien.

Can a junior lien holder foreclose in California?

If a senior lienholder forecloses on your home, any junior liens—such as second mortgages, home equity loans, and HELOCs—are also foreclosed.

Which of the following is a junior lien?

Junior liens include; income tax liens, corporate income tax liens, intangible tax lien, judgment lien, mortgage lien, vendor’s lien, mechanic’s lien. Special assessment tax liens, real estate property tax liens and federal and state inheritance tax liens are all superior to judgment liens.

What is a junior loan mortgage?

A second mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. The term “second” means that if you can no longer pay your mortgages and your home is sold to pay off the debts, this loan is paid off second.

Is seller financing a junior loan?

Sellers can potentially extend credit to buyers to make up the difference: The seller can carry a second or “junior” mortgage for the balance of the purchase price, less any down payment. In this case, the seller immediately gets the proceeds from the first mortgage from the buyer’s first mortgage lender.

What is a junior secured loan?

Junior Secured Debt means any secured Indebtedness incurred in the form of one or more series of secured notes or secured loans that are secured by Liens on the Collateral ranking junior to the Liens securing the Obligations in accordance with the ABL Intercreditor Agreement.

How long do foreclosures take in CA?

It takes several months for a lender to foreclose on a California property. If everything goes according to schedule, the process typically takes approximately 120 days — about four months — but the process can take as long as 200 or more days to conclude.

Which lien has the lowest priority for collection?

Judgment Liens That party may then file a judgment lien on your property. Often, judgment liens are lower in priority than other types of liens, like mortgages.

What is a first lien term loan?

A first lien is the first to be paid when a borrower defaults and the property or asset was used as collateral for the debt. A first lien is paid before all other liens. A bank that holds the first mortgage on a property has the first lien.