Private investors as junior lienholders

Has anyone done a short sale where the 2nd lienholder was a private party? Do they normally accept short sales? Would it be kosher to short sale the 2nd, then turn around and sell the note? I don’t want to get sued for doing something illegal. Thanks.

You are confusing buying the note and short sale. They are different. If you short sale, you can’t then sell the note.

You never know what a private party might do. I believe your best bet is usually to offer to buy the note at a discount.