Can this deal be salvaged?

[William Avery]

Can this deal be salvaged? A few years ago I purchased a house from HUD, did a complete rehab and then sold it with seller financing. After ~6 months I sold part of the note putting my remaining part in second position. Now, a year later, the first position on the note is going to foreclose due to none payment. I see this as a no win scenario for me that I will just have to add to my lessons learned file. Does anyone have any other suggestions for salvaging this deal? Cash-for-keys? Other?

[Kevin Yeats]

The typical solution for a second note holder (you) would be to buy out the first lien position.

Did you sell the first 85 payments and keep the second 85 payments which you won't collect until after the first is paid off (in about 5 more years)?