I have not personally seen or know about a situation where a lien was placed on someoneâ€™s second property by the lender(s) that are shorted. At worse they might want an unsecured note for a portion of the balance owed such as10%.
Nothing happens to the other property.The lender can only collect from the property that the lien was placed on. If they were unable to collect the full amount in the case of a short sale the lender can handle this two ways either take the balance as a complete loss or may ask for a promissory note to be signed by the seller for a certain amount . Then the rest will would then be take as a lost. By the lender.