Getting 2nd Lien Released

I have a house that I used to rent (at a loss) that I’ve also been trying to sell. Finally after several years I found a buyer (short sale). Now the 1st mortgage holder has agreed but the 2nd want me to agree to pay (interest free) some amount to pay off the 2nd like $50/month. Now the remaining principle is nearly $70,000 so that would take something like 116 years to pay off. In other words, not in my lifetime. I can’t figure out why they think that’s some kind of deal for them. I’d think they’d want a one time payment of something: Bird in the hand and all that. They’re getting $3,000 for the 1st. What’s the downside for me? I’ve talked to lawyers and they are as baffled by the lenders position as I am. Thanks for any help.


Give us a bit more details, WildeKurt.

How is it that the 1st is only $3,000 and 2nd is $70,000?

Must be something we are missing.

The 1st is something like $170,000. They are giving the 2nd $3,000. The 2nd want more, although I can’t figure out how they ever expect to get it with those kind of terms. You’d think they’d want something more concrete.

So I’d have this large sum of money I owe hanging over my head for the rest of my life. But then for $50/month, should I care? Hell, I spend more on that each month on beer and snacks. :beer

Common sense defies logic in some cases and this may be what you are experiencing.

Only the td holder can tell you the who, what, when and why of their actions.

Good Luck,

Everything is negotiable. You can or find someone to negotiate with the 2nd lien holder. Advise them it is 3K or it goes to foreclosure and they get nothing. If that does not work negotiate with them on the promissory note. Make sure you have obtained fair market value for your home. It does not appear that your home was marketed for a highest and best offer.

Counter with $25 for 232 years.