We as the Exchange Accommodating Title Holder have a mortgage to you for $500K and to the lender for $1.5 K.When your old property sells you have to pay off all debts so the $420K mortgage and the $500K heloc are paid off at closing and approx $230 goes into your exchange account. 

The insurance claim was paid out to compensate the policy holder for their loss. 

All went well until I sent the 2nd a preliminary Hud1 and they saw that the HUD claim (which was recorded in 3rd position) was receiving 6x the amount that the second was receiving.At that point, the 2nd stated  that they wanted to know why the HUD claim ( which is in 3rd position) was receiving more then they are.As far as I understand it, even though the HUD claim was recorded 3rd, they still have a higher claim because of the subrogation.I had an attorney draft a letter to the 2nd lien holder explaining this, however they are still saying that the hold a higher position then the HUD claim and as such won't agree to the Hud claim receiving that amount.Does anyone who has dealt with a deal like this have any suggestions as to what I can do to  help the 2nd understand that the HUD claim is in a higher position then them?

If you can get the information I can get you an estimate on what the note would be worth and you might be able to negotiate a short sale with the note holder and get the property for even less.

No real margin.Just has school and working class tenant for newbie buy-holder.

The borrower attorney is now filing a lawsuit to include us (note holder), PNC & anyone else associated with the note claiming it is invalid.  

If this was a trustee / bank auction, you might've just purchased a Judgement against the previous owner, and there might be other lien holders above you (with higher priority), so you won't get to foreclose or own the property until the other lien holders are paid first.Everything I just wrote is based on my own research, I've never purchased a property at an auction before but I want to start doing that soon, so please consult with an expert and don't rely on my info, because I don't want you to get screwed :)

This one goes to the Flippers and Buy & Holders in the West Georgia area, particularly Atlanta, Columbus, and Lagrange area.

So, here it goes.I'm Eric Gunderson, a licensed real estate salesperson, investor, fix/flipper, buy/holder in St Paul, MN.

Is it true that I can negotiate with the second lien holder?