80/20 Short Sale - Who decides what bid is acceptable?

[kags1969]

I am looking at a Short Sale and the property has two liens. one for 130K and a second for 30K. Does the first lien holder get to decide what offer to take and what happens to the secondary lien holder? Does the primary bank have to settle the secondary lien to get clear title in a short sale?

 

Thanks

[KYBOSH]

Nope.

The first lien holder holds all the cards.

The second lien holder gets $$$ only if there is $$$ left over from the sale to satisfy of the first lien.

Usually what happens is the sale of the house covers the first lien and the second lien holder comes after you personally for their $$$ if whatever is left over (if any is left over) isn't enuff to cover that 2nd lien. When I say come after you it'll show as a chargeoff like a credit card on your credit. Its up to them to figure if they want to come after you (lawsuit) for that $$$.

 

Good Luck

[hoapres]

Probably NOT.

 

Unless the second "signs off" on the short sale then it isn't going to get done. The second will only get extinguished involuntarily by either BK or a trustee/sheriffs sale. A trustee/sheriffs sale will extinguish the second as a lien to the property but a short sale will not.