If you can afford to pay of the First lien holder, you as the Second lien holder would be a position to take the property back through the foreclosure process. This takes time, costs money and in the end you will have to try to sell or rent the house. Hope it is in good shape.
How much did you lend to the buyer? And how much would you guess the house is worth now?
I listen to most advice but act on a few. I will take credit for all right decisions but blame others for the wrong ones. Life is a beautiful thing like a bowl of cherries so what I am doing in the pits?
Make your own decisions and be prepared to live with them.
I second the Realtors that suggested getting a RE Attorney ASAP! Save yourself. Get your Realtor to do a Comparative Market Analysis to see the homes current value. Good luck!
Betina Foreman, Realtor
I agree with the previous Realtors, I think you should secure an attorney as soon as possible. Real Estate Brokers should never give financial or legal advice unless they have certifications to do so. Foreclosure proceedings can take a while and should understand what your rights are as a mortgage holder in second position. In the future if a buyers asks you to carry a note, you will want to make sure to consult with your attorney, accountant, and Real Estate Agent/Broker. With the advice of those three professional together you should have a better understanding of what would be in your best interest.
Michael G Grimm
You do need to contact an attorney immediately. Also, you need to find out what the home is really worth currently. Do you want the house back? We are seeing many short sales selling for $10, $20, $30 thousand less than what is owed. One question for an attorney is whether you have the option to try and purchase the home at a discount through short sale. Again, the biggest question is the current value. Once you have this answer from an appraiser or experienced realtor, you will be able to consider your options.