Short Sale Can This Happen??
owners have a 1st and 2nd mortage on there home bank 1 ( 1st lein holder ) is owed $45,000 bank 2 ( 2nd lein holder) owed $22,000 crazy as this is there are not behind w/bank 2 . bank 1 is ready to start pre foreclosure. a good by buy on this house would 35 to 40 thousand. Now the question is can bank 1 do short sale to save there butt ? and would bank 2 have anything to say about ?
When you prequalify a candidate for short sale potential (see article, Prequalify a Short sale Candidate) the homeowner must qualify for relief, and the mortgagee's criteria for short must be met, too.
Generally, if a first mortgagee is likely to be made whole in an executed foreclosure proceeding, they have no motivation to short. If the second's position is at risk... they'll be more likely to consider accepting less than they are due.
The only material numbers are the property's as-is, fair market value, and the amount owed. You mention 'a good buy' but don't indicate it's confirmed, as -is value.