So they own the property but u own the note..( which was been placed into non accrual status) Now as a note holder... cant you sell the property with a new note value to X buyer.

When we bailout the Financial institutions who have mishandled and mismanaged the funds of stockholders and account holders please show me how that is different?

Junior trust deed lien holder forecloses; note owner of the senior abandons property, senior loan is delinquent, property value upside down.

Any negotiations will be handled through the new debt holder. 3) File civil action.

First with my buyer, he paid his $15,000and left with a smile. 30 minutes later, I met with the seller and the lien holder.

At that point the lender is at the end of their rope with the owner and is very unlikely to bargain.... and if they do, you have to prove that the owner is getting NO MONEY out of the deal.A short sale is extremely likely if they are a junior lien-holder and the 1st lien-holder is the one that has filed the foreclosure.

Do all lien holders need to be notified before foreclosure?

You might want to look into forclosures where the taxing authority or lien holders are seeking remedies from the XYZ or the heirs of XYZ.Personally, when I first went into the business I needed money yesterday and couldn't fray the cost of long range experimentation.

I've put together a very complete and professional short-sale package, and sent copies with all docs to both the 1st and 2nd lien-holders (who are each big lenders).

Anyway, I figured that after purchase price, just shy of 20k in rehab, and reasonable holding costs, the profit would come in at 34-38K so I put the property under contract and proceeded to look for a buyer.I was given the name of an experienced rehab and holder and contacted him about the deal.