2nd Lien holder - Foreclosure help needed

[Ronny Crawford]

I am the 2nd lien holder of a property that is about to go into foreclosure.  I have been in touch with the 1st lien holder, and he expects to start the foreclosure process this month.  Details below.

1st Lien = $195,000 plus late fees and back taxes paid

2nd Lien = $50,000 - Not looking for any late fees or penalties

3rd Lien = $80,000 - I do not know this person

Home is currently listed for sale As Is for $335,000.  I assume this is the full pay off amount owed to all 3 lien holders.

Question - What are my options in 2nd lien position?

Thanks in advance,

Ronny

[Wayne Brooks]

Quote from @Clayton Silva:

Just based off quick math, you should be good to go.  Sale price of 335k mean the seller would net somewhere around 308k after paying realtors, title fees, etc.  308k - 195k leaves 113k.  50k of that would go to you, and that third lien holder is going to get what's left which sounds like not much.  The third lienholder would be lucky to get 50k honestly.  

I am not a legal expert nor a foreclosure expert, but if the house is actually worth 335k, then my best guess is that you should be in pretty good shape!  I would definitely contact a real estate attorney in your area or some kind of foreclosure expert just to be sure.

Well, maybe not exactly….
I’m guessing the first has at least another $10k (maybe $20k) in additional property taxes, fees, foreclosure costs, etc.
Since it’s a straight sale instead of a foreclosure, it’s a short sale and the third would have to agree to take a large hit for the second to get paid in full…they’ll probably want to make the second share in the hit….otherwise, it would be off to foreclosure.  But of course, the 3rd may completely get wiped out at the auction…depends on the local auction competitiveness.

The second would probably come out okay at auction, assuming a $260k ish price.