Hi all,I wanted to get some clarity on the first and second mortgage holders on a property I have been keeping an eye on recently.The first position mortgage company has sued and gotten the property back via court.

I read somewhere that the mortgage holder must "give a written guarantee to release the property from the mortgage at a stipulated mortgage release price".

As for the equity I will have to figure it out. i spoke to the owner and today and explained to him that I would need to get authorization to contact the mortgage holders.

Realtor seems to think one could work out a deal with the Lien holders for the homes in exchange for lot fees due.

The bank furnish the funds to the debt holder i.e. the LLC.The only issue that is at hand is whether or not the estimated ARV is right.

The first note holder may have limitations on the amount of the second, though.A lien is put on a property with a deed of trust.

When we were negotiating we had the most issues with the holder of the 2nd trust.

If there's profit the current lien holders are going to want it.

It lowers the value of the note in the secondary market and does a dis service to the poor note holder.

or would he 2nd mortgage holder require the 1st to take a haircut as well?