What happens to the 2nd on a short sale?
I am trying to put together my 1st short sale. Homeowners have a discharged Ch. 7, bank has not foreclosed yet. All are willing to work with me. Property has a 2nd that includes a car that has already been repossessed. 1st bal of 115k, 2nd bal of 28k..........ARV of 140k
Can anyone help out a newguy? Where should I go from here so I don't screw anything up? Thanks for any replies!!! 
Your question was "What happens to a 2nd in a short sale?"
When there are more than one mortgages on a property being considered for short sale, it is usually the most junior who takes the most significant hit.
Meaning, the seconds have a greater exposure to risk of loss... so they are more willing to discount.
"ARV of 140k"
The only meaningful numbers to a mortgagee considering a short sale are the as-is, fair market value, and net recovery.