Yea they would keep that in place and you'd get a second position mortgage for the rest at, well, higher than todays rates.

Like Devin said, double digit rates and you could still have fees similar to a first position mortgage.

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In the middle of a lawsuit with a 2nd position lien. 

I think there's a path to refinance that would flip me into positive cash flow, but I'm coming up short on ideas. 

Is there some reason that you or the company simply don't discuss what happened and use this as an opportunity to turn a negative post into a positive one for the company?  

It makes sense now seeing that its more about ongoing duties after registration.Were I in a position to pursue syndication, I would certainly follow your advice and seek an attorney.

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I don't know if they still do it but if memory serves a few years ago TD Bank would do a HELOC on a rental in second position but only if it was titled in someone's personal name.