As An Investor Why Would I Buy A Non-Performing Residential Second?

If the second (junior lien) is behind a performing first the most likely strategy would be to turn that non-performing note into a performing note. One of the biggest reasons people stop paying is because they are upside down in their property and see no way out. After working with the homeowner and helping them to find a manageable repayment schedule, they will likely keep making their payments as they have “emotional equity” and do not want to walk away from the home even if they are upside down.