She didn't seem interested at all, and said just send me something in writing that explains this.

Hey Ryan- could you explain the 50% rule?

When constructing an offer with SF, I actually do think, "How will this sound being explained to a judge?"

Others have done a great job of explaining the pros/cons.

thanks so much for taking the time to explain!

If you don't like how they are handling your business, then have a group session and explain your expectations etc. without the "I'm on my high horse mentality."

@Wayne Brooks that is exactly what I explained but for some reason she can't comprehend.

I'd suggest talking to your mortgage company and explain the situation.

As explained above, (towards the bottom, I know it's long), if the second forecloses it should properly join all junior lien holders, those parties will be the parties who are distributed funds from sale.

So, call building regs, explain the situation and see if you can do a minor subdivision/special use permit.