Purchase of subordinate lien
Greetings!
I need help with this scenario:
1st TD or mortgage initiated foreclosure process; trustee sale is only a few days away.
2nd TD or mortgage stands to lose everything if 1st completes the FC process.
REI could negotiate and acquire 2nd TD with a huge discount
REI could then negotiate and cure 1st TD to stop FC process
REI, as 2nd TD noteholder, can now start their own FC process.
Question: Does the foreclosing mortgager (2nd) have the legal right to demand payment in FULL to cure the debt?
Obviously, the 1st TD will want payment in full on their note. Is it feasible at this point for the 2nd TD holder (REI) to re-finance the property to pay the 1st TD? Or will the 1st TD typically want to foreclose the 2nd in order to acquire the property/their share?
Note: Even with the amount required to pay the 1st and acquire the 2nd, there is still $50K plus equity in the deal. Is there something I'm missing? Is this deal worth pursuing?
Thanks for your help. 
[addsig]
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