re: Short Sale with a 2nd mortgage

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You realize this will be a loss of $34,000.00? Why should they do it just to satisfy someone who wants to buy the house?

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$3,000 > 0

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You have literally no way of knowing that.

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This article leads me to believe they will be getting ZERO. Let's just say there's a 99% chance they won't get $3,000 if they foreclose, unless you can come up with a better scenario for the 2nd mortgage?

LINK

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The second lender will always be in second position, unless the first is willing to subordinate. Ordinarily, a mortgage lender who is in first position will not subordinate the position. First in position is first in the right to collect from foreclosure proceedings. This means when a Notice of Default is filed, if the second lender wants to be first in line to receive proceeds from the auction or sale or to take the property back, the second lender must initiate its own foreclosure proceedings. In most parts of the country, this means the second lender must make up the back payments to the first lender, pay the first lender's cost to file the Notice of Default and associated expenses, and then file its own Notice of Default. If the second lender does not do this, the second lender could get wiped out in the foreclosure and receive nothing, especially if there is not enough money to go around.

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