What happens to 2nd

Foreclosures, Short Sales, Tax Foreclosures
1

Situation:
SFH
1st balance - $140k
2nd balance - $120k
Comps - $270k

2nd has already agreed to short loan amount down to $70k
If I get the 1st to short their loan what happens to the 2nd? Do I negotiate with both lien holders? Or the is the 2nd SOL if I negotiate the sale with the 1st?

The 2nd has already stated that they will bid at the sheriff’s auction if they get nothing.

I’m meeting with the owner on Monday morning to get the Authorization to Release Info signed.

What’s next?

2

Howdy My3sons:

The 1st will probably not reduce their note amount, especially if the second lienholder gets money. There is a lot of equity in the deal. I have heard of both 1st and 2bd lien holders discounting but there is usually no equity.