In a Deed in Lieu, the person or entity who takes title from the grantor is responsible for all liens attached to the property, or in other words takes title subject-to all pre-exisiting liens.
The 1st position has no requirement to assist the 2nd lien holder.
If I was the 2nd lien holder I would foreclose on the property if there was equity. If the property came back to you the lender on the 2nd loan you would take title "subject to" the 1st loan & any liens senior to yours.
If there is not any equity then I might approach the 1st TD holder & try to negotiate a solution (loan mod or short sale)... more
Not sure what site you are getting your information but as you can see this is a 2 bedroom attached bank owned condo http://socallistings.marketlinx.com/SearchDetail/Scripts/PrtBuy4Photos/PrtBuy4Photos.asp?emailGUID=e675ac16-d670-4b1d-a570-e7e07a1ba0f0&AgentId=SISRAERI.
Let me know if I can help you.
You can also view all the bank owned homes in OC on my website http://www.socaloceanviews.com/professional1.shtml... more