The primary lender will direct the transaction, however.
The primary usually has an amount that they "allow" for the second if they are not getting paid off 100%.
The second company will be smart to take what is available / offered and move on - and they often do after a little foot stomping.
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If your calculation is correct I would think that they would take the $16k but they will probably ask for more just to see if they can squeeze more out of the sale. If they can't come to an agreement and the property goes into foreclosure the 2nd lien will probably end up with nothing so I doubt they would reject it but you never know.
Good luck on your purchase!
Andrew N. Coppo
Greater Boston Short Sales, LLC
Tel (617) 264-0376