The first and the second have to coordinate meaning the first mortgage usually dictates how much the second can be offered so you do not have the option to offer the second more money because the first will most likely not approve. These short sales should have been worked together not once the first is approved on to the second.

Wachovia and Wells Fargo are easier to deal with so I am a bit surprise it has taken this long. Now Wachovia and Wells Fargo is one in the same.

Most second mortgages are not foreclosing because the foreclosure would be subject to the first meaning they would need to take over the first mortgage... most homes at lease in my area are not worth the first mortgage so the second mortgages are charging off.

The bottom line is that the second mortgage will not get a dime if the property forecloses so perhaps your agent or the listing agents needs to finesse the situation a little. We sometimes need to convince the bank of the bigger picture. And sometimes everyone needs to give a little to make it happen including the buyer, the seller, and the agents.

If the sellers have money but are refusing to settle the debt with a little of their own funds the banks do not take kindly to that and the deal could go into foreclosure.