You state the 2nd is "not willing to settle"? I have negotiated short sales that were referrals from other Realtors, I've also negotiated short sales FOR Realtors Own properties. I would pay you a referral commission if you'd like to work it this way.
The 2nd will settle. But first we need to find out what type of 2nd your friend has. Was it part of the purchase money loan or was it an equity loan from which he bought (whatever) from? Knowing that is going to tell us what the 2nd TD will want in order to accept an offer as "payment in full" or not. Luckily it's only $50K.
Let me know if you'd like to discuss this further. Email me or call me directly.
Realtor Since 1996
Short Sale Expert
We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
Your friend should consult a lawyer who can discuss the available options.
Louisiana Office of Financial Institutions..
It makes no sense for a second trust deed holder who holds paper to a note that carries no value to file for foreclosure. They would need to hold onto that property for a mighty long time before the market value finally begins to cover a portion of their investment, much less make it whole again. All the while they would be financially obligated to the first trust deed's monthly payments and loan balance.
I would certainly consult with a real estate attorney on the details of your rights in the case before making any concrete plans on how to pursue defending this action.
Diane Wheatley, Broker
Call me if you have any other questions - my parents still live in Whittier and I specialize in Short Sales in San Gabriel Valley.
Please see my blog with tips on getting a short sale approved
That's a bad situation for your friend. Sorry to hear about your friend's troubles.
Your friend should obtain legal advice from a lawyer. It is curious that a second lien holder is acting first. Typically, the second lien holder stands to gain nothing in a foreclosure. Not knowing the full circumstances, it's hard to say.