So in reality, the fee will come from the seller.

well I am not a NPN expert by any means but this is an interesting question so this is my best guess's1. the 189k is all the property is worth.. in reality.. so that's why its listed at that price.. and probably in contract for around that number.2. the seller does not realize you own the 2nd and who ever sold you the second probably realized the value was not there and unloaded it to you.. 3. your in the drivers seat in that this deal can't close without you signing off on your payoff.4. this is a short sale .. the first lender will be asked to take a short and will usually only cooperate if you as the second take no more than about 5k for your position.5. if you paid for than a few grand for the 2nd your in jeopardy.6. if you don't cooperate and the 2nd is in default you can foreclose payoff the first and deal with the asset.. 7. if the seller gets frustrated they just walk and squat stop paying on the first it forecloses and you either pay it off or it wipes you out completely .either way.. 2nds for most folks are pretty risky.. unless of course you paid next to nothing for it and its just mad money.. that you can easily lose. and just chalk it up to well that did not work.

Basically, banks are now flipping houses.This is the new reality

anyway I love that show as well.. but usually its investors being too trusting and not getting any verification other than internal reports from the sponsor.. the bank accounts don't lie and unfortunately when you go into many of these deals like Crowd funded deals you have no Access to the bank account.. so really its what ever reports they send back.. its only when you check the  actual bank accounts does reality come to play.

Once I'm to a point of contracting out altogether that obviously won't hit me as hard - which in all reality it may be a while before I feel comfortable enough to branch that far out.

Kim Herrick , I think that my sellers were very frustrated with me since before this issue came up, like when I realized that the way that how their listing agent described the properties in the package was a night and day difference to the reality of the properties’ condition.

It's great to have goals and dreams but there needs to be dose of reality mixed in.

I have a new HELOC now, 10 years later with a different bank at 4.05%, used for RE down payments and I mitigate this reality in two ways. 

@Ryan Klemetson - That reads more like a movie script than reality! 

In all reality though, a HELOC is a line of credit as opposed to a loan.