Own a 2nd, First is foreclosing, what are my options?

[Sandy Uhlmann]

While in the process of initiating FC on a second mortgage, I was scanning Netronline and noted that the first mortgage has recorded a Substitution of Trustee that recorded in front of our SOT.  I assume that this means that unless there is some delay, the first will beat us to FC?  If so, what options does the second have? (Has equity)  At this point, I assume that working with the borrower won't help unless they can bring the first current or work something out with the first?

-Bring the first current, FC and either work something out with homeowner or rent or sell the house to pay off the first?  Will the first actually accept a check from the second? 

-Buy at FC auction 

Are there other options available?

Thanks in advance.

[Adrian Tilley]

@Sandy Uhlmann

If it were me, I would redeem.  Basically any junior lien can pay off the senior lien including any interest, costs, attorneys' fees, etc to "buy them out".  If you're sure there's equity, that might be a good play.