How can I find a buyer for mortgage note with 3rd position lien?

[Mike Moyer]

I'm not trying to offer this as a deal, I am trying to learn how to find people who do these kinds of deals. I'm the holder of a $350,000 mortgage note that is in the third position. I invested in a 4-unit rental property in Chicago. I'd like to exit the deal, but the owner/manager wants to keep the building as it provides nice cash flow. I don't want to foreclose and force a sale, mostly because I'm not an expert in this area. Most mortgage buyers only want first position. Is there a market for third-position notes?

[Patricia Steiner]

Geez...that's not a good position.  There is - nor do I ever anticipate - there being active market for it. Foreclose?  You do realize that you would have to pay-off the first and second mortgage holders BEFORE any payment would come your way.  By the time the attorney fees get piled on and paid, you will most likely be paying out of pocket just to settle the first two positions.  It may be a good time to approach the borrower to see if he has any interest in refinancing the property now that rates are at historical lows and consolidating the three into one mortgage.  But be careful making any demands unless the note is due or in default because your only remedy would be to go to civil court.  Third position is not a place of strength.