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.

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  1. Reply
    Dawni Do Right
    May 19, 2011 at 8:12 am

    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.

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