Negotiating Liens with Original Mortgage Lender

[Brian Watkins]

Question regarding negotiating a Lien on a property.

Subject property has a lien of $65K with original mortgage lender (BB&T). Before the property was able to be foreclosed on a Quit Claim Deed was done and the property was moved to another owner (a business). From what I understand it happens all the time.

Owner states at one point the bank was willing to settle the lien for $25K and says they will settle again if we had cash in hand. Do I or the owner need to negotiate that lien and pay it BEFORE closing or can I simply get a settlement letter from the bank and submit it to the closing attorney and pay it on day of closing?