Of course, BoA could still make out at foreclosure IF they get somebody to bid on that second at auction - and we've had a few posts on the forums this year where people have bid on junior positions at auction.

The junior liens carry less and less security interest so I am assuming that a note buyer would pay less and less for them as compared with a lumpy bubble-type note.

The rest is junior and would get wiped out, unless the HOA chose to redeem the property.

If you are in the first lien position, you will have to pay off those junior liens if you do a "Deed in Lieu" - that is why this is best handled as a foreclosure as the first lien holder, since the second and third liens will be extinguished by foreclosing on the first.I just wish people would stop posting totally wrong GURU crap when they have no concept of what they are talking about :idea: What do you think a BANK would do - accept a DEED IN LIEU under the scenario outlined in the OP?

The banks will generally take care of any liens prior to reselling the property, so the property will likely be clear when you buy it.I am surprised that any bank would lend on a property where junior liens were not wiped out.

James short sales can take a very long time and there are junior lien holders usually that are a pain in the butt.Much more lower hanging fruit that tastes just as sweet.

The details depend on state law, but generally junior liens get wiped out.Here in CO, junior lien holders have a 15 day redemption period.

What state are you in and what rights do the junior lienholders have?

The strategy would be to buy it (in essence giving the note holder some cash to walk away from the deal), and to proceed with the foreclosure process as a means to ultimately acquire the property.The maturity date was supposed to be 8/1/2016, but that really doesn't matter since the note is non-performing.You need to find out the following: (1) what position this note is in, as being a "junior" lien makes it a lot less valuable, and (2) what, if any, type of delay tactic (bankruptcy, etc.) the payor is using to delay the foreclosure process.

Sounds like the razzing a kid in junior high gets when he gets the coolest bike of anyone in school!