The bottom line is that the first dictates whether the deal will happen or not and under what terms. The 2nd's ability to hold out is in direct relation to the borrowers (seller) ability to contribute cash to the loss. If they cannot do this, then the 2nd can demand all they want, but they will be at the mercy of what the first requires assuming the 1st is taking a loss. If the 1st is getting full payment, then of course the 2nd will have a bit more negotiating power as this would lead one to think that there is some sort of equity position in the property.
So to answer your question, if the 1st is taking a loss and the 2nd wont discount you wont have a transaction...unless you can figure out some method of getting them paid outside closing.
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