When you and your spouse each apply for credit individually, only that person's stuff is included in the math.

Simple math says why try to talk a client into a higher priced property that results in $20,000 for my brokerage when I can steer clients to a listing that's $100,000 LESS and it results in $27,000 for my brokerage.As the (potential) client you need to let that agent know that you know this.

It's not a matter of whether the lender is willing to take more risk, but whether that loan is marketable on the secondary market and if you don't have the rebuild letter, it will be thrown on the scratch and dent heap of loans, costing the lender thousands (maybe 10's of thousands depending on the loan amount)

Please reach out if you have knowledge on actuarial math / risk assessment and excel. 

It's hard to compare just the idea of it until you do a little math.  

Do the math on that.....its over $30k profit.

Glean from experts their words of wisdom in the industry.I've personally had much success out in the secondary, and tertiary markets.

That's math you need to figure out. 

A Portfolio loan is a loan that a bank/credit union keeps in house in Their Portfolio of loans, they don’t sell them off in the secondary market.

There are hardly any foreclosures happening right now, since anything with a federally guaranteed mortgage is under moratorium.But to answer your general question assuming it's a foreclosure auction: while there are differences from state to state, there are no states in which foreclosing on a secondary lien cancels the primary lien.