Second mortgage is a personal note - now what?

[A Nonymous]

Does anyone have experience negotiating a short sale in which the second note holder is a personal note (i.e. not a financial institution).

We've reached an agreement with the bank, but the person who holds the second note has rejected our offer. My understanding is that the second note holder doesn't get anything if the house goes to foreclosure. Is that different when it concerns a personal note?

Just trying to understand why the second note holder is blocking the sale and what we can do to help it along. Any thoughts?