Go Back To Search Results Question Short sale when you have a 1st and 2nd mortgage? If you do a short sale on your property, the first mortgage gets cleared, but what happens with the second mortgage? Does the other bank still come after you for the balance? By Laura B Posted on 01/16/08 Total Answers 4 Answers- If there is enough to pay off the 1st mortgage, then the 2nd lien has to agree to what’s left. If there is not enough to pay off the 1st, then the 2nd must agree to about $500-$1,000, and then the 1st will consider taking the remainder. Answer by : DoveyBuzzy On Date 2008-01-16 08:24:28 You cannot sell the property until the 2nd releases their lien on the property. You can try working out a settlement with them to see if they will accept less than is owed. Otherwise, the sale cannot go through Answer by : jwishz On Date 2008-01-16 08:25:12 You can't do a short sale unless both banks agree. You would have to cover the first and reasonably cover the second. Answer by : Landlord On Date 2008-01-16 09:36:49 Hi Laura B, There might be something that you can do to save your home go to http://www.hopenow.com. HOPE NOW is a non profit cooperative effort between counselors, investors, and lenders to maximize outreach efforts to homeowners in distress. They are non profit third party intermediary that will negotiate with your lender in your behalf to freeze your interest rate to its original rate. Answer by : NevadaHomes On Date 2008-01-16 22:23:35   Go Back To Search Results