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Kevin, I always tell the seller if they have a second mortgage they better be prepared to bring $$ to closing or sign a note. I go into EVERY sale with that up front. Most amounts can be negotiated down, but that's why I have the buyer offer their lowest amount to start and work upward.
I think traditionally second lenders can be tough, although I just had two SPS liens on the same property with an original note of $425,000 and they accepted a $175,000 NET. Who knows?!?!?
I think if you prep your sellers they may be required to come up with $$ or sign a note you're in a much better position when the ball drops at approval time, and then it's a GREAT gift when that second doesn't ask for $$. The alternative if they won't do this is foreclosure and that's what you have to explain to them.
Good luck.
The only time that I don't have the 2nd asking for more than what the primary lien holder is providing, is when I am dealing with a Fannie mae loan with the primary. Recently I had PNC back off the request when they learned it was a Fannie first. Not entirely sure why, but it allowed us to close when we would have been stuck.
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