I have a property in which I will attempt to negotiate a short sale on the second mortgage and reinstate the first mortgage and take over the payments (on the first), fix-up and flip. I plan to hold for a short time (2-3 months). If my sales contract indicates the first mortgage will be taken over “subject to” the existing first mortgage, will this create a problem with regard to my negotiations with the second mortage holder. I do not want to red flag anything that might limit or destroy my chances to short the second. Any input would be appreciated. Thank you, Mark.
WHy send up red flags. Dont put it into your contract that way. Leave it out. If you choose to take it subject to there is no need to tell the second lender that. Send them a short version of your package indicating they will need to take a loss based on your net sheet. If I missed something, the veterans can tell you better, I’m currently working on my second ss. 
steve