Short Sale Myth #5…..
You cannot do a short sale with 2 mortgages
When the short sale process started many people could not short sale because they had a second mortgage. After the first wave of foreclosures lien holders in second position realized that if they did not participate in the short sale they would receive $0! Now instead of foreclosing on a property, they have started to accept pennies on the dollar which is better than getting nothing. One mistake seen in the short sale process is not initiating the short sale for both loans. Some agents wait on the first to get approved before starting the second. This just causes additional time and delays. It is much smarter to work them both and work them backwards: if you know up-front what the second will take it makes it easier to negotiate the first.