How Can I Release A 2nd Mtg Prior To Closing On A Short Sale
the lender on the first states that all junior lien holders must provide written notice of their willingness to release liens prior to closing even though they recieve little or no proceeds. the lender is countrywide. i have to tell them about the 2nd because they will see it on the hud at closing. how do i get around this need help thanks 
offer the 2nd lender a discount to satisfy the mortgage. If the balance is $25,000 offer them $2000 or so.
the lender on the first states that all junior lien holders must provide written notice of their willingness to release liens prior to closing even though they recieve little or no proceeds.
Well, first off , this is bull hocky (sp?), & jr. lien holders need provide 1st lender with NADA. ZIPPO. NUTTIN'.
Of course, if you make pvt deal with lender then it's a different story & that depends on what kind of deal, what you're wanting to do, what you are getting from them.
If you can, see if lender will let you buy them out for a few bucks so then YOU own the right to foreclose on YOUR lien.
I do know that some of these giant lenders, for reasons known only to themselves, have a corp. policy that they will NOT sell or assign their note & lien, and will only give a full release for any payoff...and in those cases, unless you do have another lien that you CAN foreclose upon, paying off the 1st only moves your 2d to the front of the line.
But just understand that nothing could legally force you to release your 2d or your note from defaulting buyer, until & unless you're paid in full.
question...isn't this to do with having a "clear" title ? If I held the 2nd position and started the foreclosure, wouldn't I have to satisfy the 1st position to get title? mcldavid... to go back to the question dieter has...Isn't the 1st lender saying they want to be shown in writing that all "liens" are washed and "1st" has clear title ? thanks.. mcldavid
what i dont understand is how do i payoff the 2nd unless i am doing this at closing. my contract is for 60k. if the 1st is to net around 60k then how do i pay the 2nd mtg? do i offer 65k and 5k for the 2nd or do i have to pay cash and clear the 2nd prior to closing the first.
how do i show the 2nd on the hud1 to the first mtg. im confused.
if you can get a discounted assigment of the 2nd mortgage then you can go ahead and complete the deal with the 1st mortgage.
what is an assignment of the 2nd. do you mean i have to pay off the 2nd cash 1st? cant i just close and pay for the 1st and 2nd at closing?
I have no experience in this - disclaimer.
But my understanding is that you can satisfy both the 1st and 2nd at closing. You will have negotiated with both an approved payoff amount and have a written letter from each stating their approved payoff amount. The 1st will want to know about the 2nd and what they are getting for payoff as it will be on the HUD1.
Another route is to assume the mortgage of the 2nd. This is a legal paper like a deed but is called an Assignment of Mortage. You are buying the note. So after you buy the property you will owe yourself. Of couse you have to come up with the cash up front to buy the note. I assume that buying the note is easier to do with smaller companies that can move quickly to complete the Assignment of Mortgage paper work.
Who out there has bought the note. What are you experiences?
Brenda
You are all making this too hard. Get 2nd mortgage holder to agree to what ever deal you can make as low as possible and get them to agree in writing. Fax copy of this to Countrywide and you have it. You can get title company to pay bith liens at closing.
Good LUCK and Thank You
Hope this helps some
Ted Jr