Posted on: 09th Apr, 2009 06:29 pm
I have a question for you re. one of our empty restaurant building I told you about at the Omni Hotel in Charlotte. This particular restaurant bldg. we had to return to the bank last September when the note matured and the bank would not refi. In the original loan docs on this building loan of $1.5 M the bank also put second liens on two other properties of ours. We now have an offer on one of our other properties for $140K but the Bank will not release their secondary lien in order for me to execute the sale of this lot unless we totally satisfy the $1.5M note. Needless to say we cannot, in this economy, get the $1.5 M nor does the sale of a $140,000 lot come close to satisfying $1.5M. I am in great need to sell just for the purpose of retiring some debt as well as I can no longer afford to pay the monthly note to the mortgaging bank.
Question: Is there some way we (the mortgaging bank and myself) can dispose of the secondary lien encumbrance? Maybe by a friendly foreclosure with the first lien holding mortgaging bank, etc
Question: Is there some way we (the mortgaging bank and myself) can dispose of the secondary lien encumbrance? Maybe by a friendly foreclosure with the first lien holding mortgaging bank, etc
Hi Guest!
Welcome to forums!
You'll have to negotiate with the bank on this issue and convince him to accept a lower amount and release the second lien. However, it would be the lender's discretion whether he would accept your deal or not.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
You'll have to negotiate with the bank on this issue and convince him to accept a lower amount and release the second lien. However, it would be the lender's discretion whether he would accept your deal or not.
Feel free to ask if you have further queries.
Sussane
The second lien holding bank has refused to settle for a lower amount on the second lien collaterilzed lot stating they will not release the lot for sale unless the entire massive amount on their loan facility is paid in full. This is physically and financially not possible. Any other ways to dispose of collateral secndary lien?
Hi Matt,
I don't think there is any other way to dispose off the property. It would be better if you could negotiate with the lender so that he settles for a lower amount.
I don't think there is any other way to dispose off the property. It would be better if you could negotiate with the lender so that he settles for a lower amount.