Basic Short Sale Question(s)
Situation: there is a first and second mortgage on a property that is in default (not yet in foreclosure). So far I have learned (in another post) that:
- I should try and short sale the 2nd mortgage.
- I will likely need to wait until the 1st goes into foreclosure before the 2nd lien holder will want to negotiate.
the questions are:
1. if I am successful in neogotiating with the 2nd lien holder, can I also work on the 1st lien holder to get an additional reduction or will it just have to be paid off to stop the foreclosure process?
2. if I am successful in neogotiating with the 2nd lien holder (pay him off), can I pay the back pmts owed on the 1st to get it current and then buy the property subject to the existing first?
I am probably missing something .. just trying to be creative! Thx.
Molotov 
Congratulations!
You figured this out yourself. And you came to the right conclusions.
Two things to consider:: First, before you spin your wheels, get the deed.
Next, the 1st mtg may or may not negotiate a reduction It depends on how much of an equity cushion they have and whether they need an other foreclosure in their portfolio.