They probably will not foreclose anyway, even though as you say they property is worth more than is owed on the 1st. It would have to be very obvious that they could net out some money if they do.

Most junior liens are waiting these things out and hoping the 1st will foreclose, because then the debt becomes unsecured debt and believe it or not they have a better chance of collecting.

Sorry ,I was writing my answer at the same time you were answering. The second can foreclose and as long as they take care of the other liens, they will own the property.

Yes, they can but should they? The second or any others that come have to negotiate with the first lein holder.
If there is enough equity to do a sale than they will foreclose! It all comes down to what is owed and what the value is.

The property it worth’s more then the first loan, the second would like to foreclose and pay the first loan off. This is not about short sale, does the 3er lien has complied?

Yes they can foreclose but in this market more than likely the property isn't worth what is owed on the first. In order for the second to get anything they would have to negotiate with the first lien holder for a piece of the pie. Sounds like a Short Sale scenario if the value isn't there. If you need help with a Short Sale please let me know. We have a short sale department that does nothing but help people solve this type situation.
Good Luck, Laura
ERA Dream Team

Yes - they can and eventually they will. If the second is all negative they may choose not to foreclose right now but pursue other avenues of collection. Their lien will stay on the property until it is satisfied by a sale, a foreclosure, or maybe the owner can work out a settlement with the second.
No matter which way you go about it - someone has to pay the piper! 2nds never just disappear!

Hi Lettty, How are you?
My question is: Is this a short sale you are looking at? Is the property up-side down? It does not make sense for the second to forclose if they are getting a property that has zero equity unless they want to maybe and keep it a while. A second can forclose but then they still owe the first and the first may or may not allow the second to make payments on the loan. There is always more to it than appears!!!
Connie Bramble

Yes, they can...

Best of luck to you!