Jp: Your situation is a bit fuzzy, but it sounds like a short sale scenario. If it is, the 2nd rarely gets the full amount and the lesser amount is usually negotiated. If you satisfy the second's need for payoff AND it is less than the amount owed, it will say something to that effect in your credit report. The wording might be something like "Payment satisfied, not in full." This will have a negative effect on your credit score, but depending on the bank and how it is phrased, your score could be minimally affected.