Document:

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                                                                    Exhibit 10.2

                             Clearwing Capital, LLC
                       c/o Chrysalis Management Group, LLC
                             The Belgravia Building
                         1811 Chestnut Street, 3rd Floor
                        Philadelphia, Pennsylvania 19103
                          Telecopier No. (215) 567-6129

January 26, 2005

Mr. John Anderson
Greenwich Capital Financial Products, Inc.
600 Steamboat Road
Greenwich, Connecticut 06830
Telecopier No.  (203) 618-2135

        Re:     Interest Only Strip issued by ABFS Mortgage Loan Trust 2002-4

Dear Mr. Anderson:

        Reference is made to (a) that certain Trust Agreement, dated as of
October 14, 2003 (the "TRUST AGREEMENT"), by and among Wilmington Trust Company,
as trustee for ABFS Warehouse Trust 2003-1, a Delaware statutory trust ("TRUST
2003-1"), and the Depositors party thereto, and (b) that certain Pledge and
Security Agreement, dated as of October 14, 2003 (the "PLEDGE AGREEMENT"),
between Trust 2003-1 and Clearwing Capital, LLC ("CLEARWING"), pursuant to which
Trust 2003-1 pledged to Clearwing certain interest only strips, including the
interest only strip, represented by that certain Class X Certificate, No. X-1,
issued by ABFS Mortgage Loan Trust 2002-4. Any capitalized term used herein and
not defined herein shall have the meaning ascribed to such term in the Pledge
Agreement.

        We understand that on January 21, 2005, American Business Financial
Services, Inc., a Delaware corporation, American Business Credit, Inc., a
Pennsylvania corporation ("ABC"), American Business Mortgage Services, Inc., a
New Jersey corporation, and HomeAmerican Credit, Inc., a Pennsylvania
corporation (the "DEBTORS"), filed Chapter 11 bankruptcy cases in the United
States Bankruptcy Court for the District of Delaware (the "BANKRUPTCY CASES").

        We also understand that (a) ABC has made an offer to purchase from Trust
2003-1 that certain interest only strip, issued by ABFS Mortgage Loan Trust
2002-4 (the "2002-4 IOS") represented by Class X Certificate, No. X-1, for the
sum of $2,330,000 in cash, subject to Clearwing's lien on the 2002-4 IOS as
subordinated hereby (the "IOS SALE"); (b) concurrently with the consummation of
the IOS Sale, Greenwich Capital Financial Products, Inc. ("GREENWICH") desires
to purchase the 2002-4 IOS from ABC, pursuant to that certain Master Repurchase
Agreement (the "REPURCHASE AGREEMENT"), for $6,830,000 (such transaction, the

                                       1
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"INTERIM DIP FINANCING"), and (c) upon such purchase, the Class X Certificate,
No. X-1 (currently in the name of Trust 2003-1) will be cancelled and reissued
in the form of Class X Certificate, No. X-1 (in the name of Greenwich).

        To enable Greenwich to consummate the Interim DIP Financing with ABC,
Greenwich has requested that Clearwing subordinate its lien on the 2002-4 IOS to
Greenwich's interest in the 2002-4 IOS solely in an amount not to exceed the
amount of $6,830,000 plus interest, fees, costs, and expenses as specified in
the Repurchase Agreement (the "PREFERRED INTEREST AMOUNT").

        Now therefore:

        1.      SUBORDINATION.

                (a)     Subject to the terms and conditions set forth in SECTION
2 below, Clearwing hereby agrees that (i) the lien of Clearwing on the 2002-4
IOS shall in all respects be junior and subordinate to Greenwich's interest in
the 2002-4 IOS solely to secure the obligations under the Interim DIP Financing
up to the Preferred Interest Amount; and (ii) Clearwing shall not be entitled to
receive any payment or distribution with respect to the 2002-4 IOS unless and
until all obligations owed to Greenwich in respect of the Interim DIP Financing
in an amount not to exceed the Preferred Interest Amount has been paid in full
in cash.

                (b)     Greenwich hereby (i) acknowledges and agrees that the
2002-4 IOS is and at all times relevant hereto (including from and after the
purchase by Greenwich of the 2002-4 IOS from ABC pursuant to the Repurchase
Agreement) shall be subject to the lien of Clearwing and acknowledges and agrees
that Greenwich has no interest in the 2002-4 IOS other than the interest
described in this letter agreement up to the Preferred Interest Amount, and (ii)
agrees that immediately upon payment in full of the Preferred Interest Amount,
Greenwich will and does hereby agree to transfer and assign the 2002-4 IOS,
subject to the lien of Clearwing, back to ABC.

                (c)     ABC hereby agrees that upon the transfer and assignment
by Greenwich of the 2002-4 IOS to ABC, the 2002-4 IOS shall remain subject to
the lien of Clearwing until such time as all of the obligations of Trust 2003-1
to Clearwing have been paid in full in cash.

                (d)     Anything in this letter agreement to the contrary
notwithstanding, upon the occurrence of (i) an event of default under the
Repurchase Agreement and (ii) Greenwich's determination to take control of and
sell the 2002-4 IOS to repay the Preferred Interest Amount, Greenwich shall (x)
consult with Clearwing regarding such sale, and (y) if such sale is to an
independent third person with no affiliation or relation to Greenwich or any of
its officers or directors, such sale shall be free and clear of Clearwing's lien
on the 2002-4 IOS; PROVIDED THAT the proceeds of any such sale to a third party
shall be applied FIRST to the repayment of the Preferred Interest Amount, SECOND
to the repayment of all amounts secured by Clearwing's lien and thereafter, any
surplus shall be remitted to ABC.

        2.      CONDITIONS PRECEDENT. The effectiveness of this letter agreement
and the agreements provided herein are subject to the fulfillment, to the
satisfaction of Clearwing, of the

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following conditions:

                (a)     Clearwing shall have received this letter agreement duly
executed by the parties hereto, and the same shall be in full force and effect;

                (b)     All documents and legal matters in connection with the
IOS Sale and the Interim DIP Financing shall have been delivered, executed, or
recorded and shall be in form and substance satisfactory to Clearwing, all of
the conditions set forth in the documents evidencing the IOS Sale and the
Interim DIP Financing shall have been satisfied, and the IOS Sale and the
Interim DIP Financing shall have been consummated in accordance with its terms
on or before January 26, 2005;

                (c)     Clearwing shall have received a copy of the signed and
entered order from the United States Bankruptcy Court for the District of
Delaware approving the IOS Sale, the Interim DIP Financing, and this letter
agreement, which order shall (i) provide that upon the transfer of the 2002-4
IOS from Greenwich to ABC pursuant to SECTION 1(b) and (c) of this letter
agreement, (x) the 2002-4 IOS shall be free and clear of all interests and
claims (if any) other than Clearwing's lien, (y) the 2002-4 IOS shall remain
subject to the lien of Clearwing until such time as all of the obligations of
Trust 2003-1 to Clearwing have been paid in full in cash, and (z) Clearwing's
lien shall be a valid, perfected and enforceable security interest in the 2002-4
IOS that shall constitute a first priority lien in the 2002-4 IOS without any
further action by Clearwing or any other person, and (ii) otherwise be in form
and substance satisfactory to Clearwing, in full force and effect, final and
shall not have been vacated, stayed, reversed, modified, amended or appealed, in
any respect;

                (d)     all other approvals, licenses, or consents necessary to
consummate the IOS Sale and the Interim DIP Financing shall have been obtained;

                (e)     No Event of Default under and as defined in the Pledge
Agreement shall have occurred and be continuing on the date hereof, nor shall
result from the consummation of the transactions contemplated herein;

                (f)     No injunction, writ, restraining order, or other order
of any nature prohibiting, directly or indirectly, the consummation of the
transactions contemplated herein shall have been issued and remain in force by
any governmental authority; and

                (g)     Trust 2003-1 shall have received from ABC the sum of
$2,330,000 in cash, and, in consideration of the subordination provided herein,
Clearwing shall have received from Trust 2003-1 the sum of $2,330,000 in cash,
which amount shall be used to prepay the obligations owed by Trust 2003-1 to
Clearwing, in the inverse order of maturity.

        3.      WILMINGTON TRUST. It is expressly understood and agreed by the
parties hereto that this letter agreement is executed and delivered by
Wilmington Trust Company, not individually or personally, but solely in its
capacity as Owner Trustee, in the exercise of the powers and authority conferred
and vested in it, (b) each of the undertakings and agreements herein made on the
part of Trust 2003-1, is made and intended not as personal representations,
undertakings and agreements by Wilmington Trust Company, but is made and
intended for the purpose of binding only Trust 2003-1, (c) nothing herein
contained shall be construed as creating

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any liability on Wilmington Trust Company, individually or personally, to
perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any
person claiming by, through or under the parties hereto and (d) under no
circumstances shall Wilmington Trust Company be personally liable for the
payment of any indebtedness or expenses of Trust 2003-1 or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by Trust 2003-1 under this letter agreement or any other related
documents.

        4.      MISCELLANEOUS.

                (a)     This letter agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this letter agreement by facsimile or electronic mail shall be equally effective
as delivery of a manually executed counterpart.

                (b)     Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this letter
agreement for any other purpose.

                            [Signature page follows]

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                                    Sincerely,

                                    CLEARWING CAPITAL, LLC,
                                    a Delaware limited liability company

                                    By:    Chrysalis Capital Partners, LLC,
                                           a Delaware limited liability company
                                           Its Manager

                                           By: /s/ Gregory L. Segall
                                           -------------------------
                                           Name: Gregory L. Segall
                                           Title: Chairman & Managing Director

AGREED AND CONSENTED TO BY:

GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.

By:  /s/  Dominic Bastich
   ------------------------
Name:  Dominic Bastich
Title: Senior Vice President

ABFS WAREHOUSE TRUST 2003-1

By:    Wilmington Trust Company, acting
       solely in its capacity as Owner Trustee and
       not in its individual capacity

By: /s/ Jeffrey J. Rossi
   ------------------------
Name:  Jeffrey J. Rossi
Title: Senior Financial Services Officer

AMERICAN BUSINESS CREDIT, INC.

By:  /s/ Stephen M. Giroux
    -------------------------
    Name:  Stephen M. Giroux
    Title:  Executive Vice President and General Counsel

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cc:   Blank Rome LLP
      One Logan Square
      Philadelphia, PA 19103-6998
      Telecopier No. (215) 569-5555
      Attention:  Lawrence F. Flick II, Esq.

      Paul, Hastings, Janofsky & Walker LLP
      515 South Flower Street, 25th Floor
      Los Angeles, CA 90071
      Telecopier No. (213) 627-0705
      Attention:  Hydee R. Feldstein, Esq.

      Kirkland & Ellis LLP
      200 East Randolph Drive
      Chicago, IL  60601-6636
      Telecopier No. (312) 861-2200
      Attention: Linda K. Myers P.C.Amendment No. 2 to Master Repurchase Agreement, dated January 26, 2005

  
 
Exhibit 10.36 
  
 AMENDMENT NUMBER
TWO 
 to the 
 MASTER REPURCHASE
AGREEMENT 
 dated as of December 1, 2004 
 among 
 ECC CAPITAL CORPORATION, 
 ENCORE CREDIT CORP. 
 and 
 WACHOVIA BANK, NATIONAL ASSOCIATION 
  
 This AMENDMENT
NUMBER TWO (“Amendment Number Two”), is made this 26th day of January, 2005, among ECC Capital Corporation (“ECC”), Encore Credit Corp. (“Encore” and together with ECC, the
“Sellers”) and Wachovia Bank, National Association (the “Buyer”), to the Master Repurchase Agreement, dated as of December 1, 2004, as amended, among the Buyer and the Sellers (the “Master Repurchase
Agreement”). 
  
 RECITALS 
  
 WHEREAS, the Sellers are in the process of converting to a REIT and selling
shares of the REIT in a public offering (the “Public Offering”); 
  
 WHEREAS, the Buyer and the Sellers entered into the Master Repurchase Agreement; 
  
 WHEREAS, the Buyer and the Sellers entered into Amendment Number One to the Master Repurchase Agreement, dated January 5, 2005; and 
  
 WHEREAS, the Buyer and the Sellers wish to further amend the Master
Repurchase Agreement as follows. 
  
 NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and of the mutual covenants herein contained, the parties hereto hereby agree as follows: 
  
 SECTION 1. Defined Terms. Any terms capitalized but not otherwise defined herein shall have the respective meanings
set forth in the Master Repurchase Agreement. 
  
 SECTION 2.
Amendments. The Master Repurchase Agreement is hereby amended as follows: 
  
 (a) Section 14(g)(ii)(A) is hereby amended by deleting subclause (A) in its entirety and replacing it with the following: 
  
 Sellers shall not permit the ratio of their aggregate consolidated Indebtedness to Sellers’ aggregate Adjusted Tangible Net Worth to exceed 35:1 for
the period from January 26, 2005 to the earlier of (i) February 28, 2005 or (ii) the closing of the Public Offering. After the earlier of (i) February 28, 2005 or (ii) the closing of the Public Offering, Sellers shall not permit the ratio of their
aggregate consolidated Indebtedness to Sellers’ aggregate Adjusted Tangible Net Worth to exceed 20:1 at any time; 
  

 (b) Section 14(g)(ii)(C) is hereby amended by deleting subclause (C) in its entirety and replacing it
with the following: 
  
 Sellers shall maintain unrestricted cash
greater than or equal to $7,500,000 for the period from January 26, 2005 to the earlier of (i) February 28, 2005 or (ii) the closing of the Public Offering. After the earlier of (i) February 28, 2005 or (ii) the closing of the Public Offering,
Sellers shall maintain unrestricted cash greater than or equal to $10,000,000; and 
  
 SECTION 3. Conditions Precedent. This Amendment Number Two shall become effective on the date on which the Buyer shall have received the following: 
  
 (a) this Amendment Number Two, executed and delivered by duly authorized officers of each of the Sellers and the Buyer; and

  
 (b) such other documents as the Buyer or counsel to the Buyer
may reasonably request. 
  
 SECTION 4. Representations. In
order to induce the Buyer to execute and deliver this Amendment Number Two, the Sellers hereby represent to the Buyer that (i) no Default or Event of Default has occurred prior to the date hereof and is continuing on the date hereof and (ii) as of
the date hereof, after giving effect to this Amendment Number Two, the Sellers are in full compliance with all of the representations and warranties, covenants and any other terms and conditions of the Master Repurchase Agreement and the other
Program Documents. In addition, each Seller hereby represents and warrants that no event has occurred that constitutes or should reasonably be expected to constitute a Material Adverse Change with respect to it. 
  
 SECTION 5. Governing Law. THIS AMENDMENT NUMBER TWO SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS DOCTRINE APPLIED IN SUCH
STATE. 
  
 SECTION 6. Counterparts. This Amendment Number
Two may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. 
  
 SECTION 7. Limited Effect. Except as expressly amended and modified by
this Amendment Number Two, the Master Repurchase Agreement shall continue in full force and effect in accordance with its terms. Reference to this Amendment Number Two need not be made in the Master Repurchase Agreement or any other instrument or
document executed in connection therewith or herewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Master Repurchase Agreement, any reference in any of such items to the Master Repurchase
Agreement being sufficient to refer to the Master Repurchase Agreement as amended hereby. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment Number Two to be executed and delivered
by their duly authorized officers as of the day and year first above written. 
  

			
	 ECC CAPITAL CORPORATION, as Seller

		
	 By:
	 	 

			
	 Name:
	 	 

			
	 Title:
	 	 
	
	 ENCORE CREDIT CORP., as Seller

		
	 By:
	 	 

			
	 Name:
	 	 

			
	 Title:
	 	 
	
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
 as Buyer

		
	 By:
	 	 

			
	 Name:
	 	 

			
	 Title:

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