Updated over 8 years ago on . Most recent reply
Second Lien Question-Short Sale
If a property is being sold as a short sale, is the first lienholder/lender obligated to pay the second lienholder anything? I had heard discussions that the first lienholder usually pays the second lienholder $3000 or so. Is this correct or is this just a courtesy?
Most Popular Reply
No, the first lien holder does not have to give anything to a second lien holder if the first lien isn't paid off.
Ex: House has a 100k mortgage held by Bank A in first position and a 25k mortgage in 2nd position to bank B
You want to buy it at 75k. IF it's approved then the 25k mortgage gets nothing because the first mortgage wasn't satisfied