Source: Alok Pathak (from WhatsApp)
If you have a 1st mortgage that has no 2nd, you credit bid, pay the DIP, and take over the property.
If you have a 1st mortgage with a 2nd mortgage, you can credit bid, pay the DIP, and take over your property. In this scenario, the 2nd mortgage holder could credit bid to pay you out. They would pay your principal, interest, fees, everything that is owing to you, and the DIP. If you have a small 1st with a larger 2nd, this might make sense for them. If you have a large 1st with a smaller 2nd, they might just take the loss.
For multiple 2nds, do you mean a blanket mortgage on multiple properties, or do you mean like a 2nd and 3rd on one property? 3rd would have to buy out 2nd and 1st and pay DIP.
The 1st should not have to buy out the 2nd in any scenario.
Your credit bid is your debt owed to you, equity doesn't really factor into the credit bids.
I think any real estate lawyer would be able to do these transactions