To Short Or Not To Short The 1st...What Would You Do?

ARV=205K (based on sold comps)
1st=158K
2nd=28K
Contractor repair estimate=23K
House is vacant, keys with me.

1st is foreclosing (wells Fargo)

I am submitting a SS package to the second (HSBC)

Is it possible that the 1st will short?? If so, how do I dictate the purchase price and payoff to the second on the Hud if I do not even know if the second will approve the number I sent to them.

Any input is greatly appreciated.

Zo