A short sale AFTER a 2nd mortgage was written off.?
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I am trying to help my bother out. He has a home that has a first and second mortgage on it. He is VERY behind on both of them…he never even paid ONE payment on his second in almost 2 years. Well the 2nd mortgage company wrote the loan off but the 1st is still there (very close to foreclosing). He is trying to do a short sale but we can’t seem to figure out how to get the 2nd mortgage off of the title.
The 2nd may be waiting to see what happens with the first, if the home will be sold at foreclosure to cover both or at least a portion of the 2nd. If trying for a short sale on the 1st, your brother is going to need approval from ALL lien holders.
Lien holdlers don’t typically “write off” a loan. If they did, there would have been something recorded. There will most likely be a deficiency judgment in your brother’s future.