Obviously, to alot of us at least, it should be in the best interests of both banks to get together and sell the property at a fair price. However, unfortunately, it does not always work that way! You say the lender holding the second lien, which I assume to be a second, is holding a loan three times the value?
In negotiating, I suspect the holder of the first who is selling the property is unwilling to give any where near what is asked by holder of the second lien for their share of the sale.
The listing agent representing the primary bank and your realtor need to be putting their heads together and call on these banks to come to agreement! I wonder…and I am not a realtor…if there is anyway you could somehow pay something to the holder of the second beyond what the minimum amount the holder of the first lien is willing to accept? That would, of course, increase your sales price. What if it is just $10,000 or $15000 to the holder of the 2nd that would clinch a deal?
Anyway, good luck!
Hope you have a good realtor and/or real estate attorney involved here, as you’re treading on dangerous ground. A quit claim deed will be virtually worthless here, if there are two liens and you’re only getting one satisfied, the second lien holder can and will demand payment from you in addition to the sales price on the first. Good luck, these situations can be challenging at best and riduculous at worst!
If the current bank actually foreclosed on the property, any other mortgage liens should have been wiped out through the foreclosure sale. Speak to a Title or Closing Attorney in your area as you will need to get professional advice. It is the seller’s responsibility for delivering clear and marketable title. If you need help financing or more guidance on this, I’d be happy to help! I can originate loans in all 50 States and would be happy to work with you!