[quote=MrsKryten][quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.[/quote]

So you want to make sure it is reported so you have to come in at a higher appraisal price and pay taxes on that additional $20K? Be careful what you ask for. If you are going to pay out the $20K, pay it out and have them record the house at the initial offering.