Posted by Max W. (VA) on March 13, 2000 at 21:17:13:
Mike,
You may want to consider filing a “Request for Notification” with the First Lien holder in case of default. If the payor becomes delinquent on the First, you want to have as much notice as possible BEFORE a foreclosure to take steps to protect your position.
You can usually check the status of the First Lien with your buyers account number using the automated toll-free system most lenders have. You may want to require them to provide this information / permission to do inquiries at the closing (if available.)
Also, consider putting some language in your Mortgage / Deed of Trust that automatically places the Second in default if the First becomes delinquent.
These are the ideas I came up with off the top of my head. I am sure there are more ways to protect your position.
Max W. (VA)