That's good news for you! Yes, the second lien holder is out of the way and you've already got approval from the first, so you should be 'good to go'. They'll want to move quickly, so make sure your lender has everything they need to get back from underwriting ASAP. If you miss their target closing date, it'll change their net sheet and subsequently might get thrown back into the approval process.

We just found out the 2nd mortgage has been discharged. Does that mean we are OK?

If you know the second, you should be submitting the same information to the second as you did with the first. You needed to have a plan that included both all along with a HUD to both all along. The second is the one that can stop the whole process. The first could give an approval and the second could simply say no. They are extremely important. The first would want a written confirmation that they accept the terms that you agreed to with the second and the second will want confirmation of what the first is accepting.
Hope that helps
Kathy Byrnes

The seller and their agent should be talking to the second lien holder. The second lien holder typically won't move a muscle or expend any resources until the first lien holder approves the short. Hopefully the seller's agent prepared a prelimary HUD that left the second a little $$$$. It'll be hard to swallow that pill without getting anything for it. Unless you are on the authorization form that let's the banks talk to you about the personal business of one of their clients, they won't talk to you about any details.

The seller should know who the second is with and started the short sale process with them already. Seconds alweays take long because the first normally is willing to only give them a very small amount to release their lien. The second may ask for the home owner to sign a personal note for the balance or a portion of it.

That information would only be available from the seller or their agent. They would have to have an approval
from the 2nd mortgage too in order for this home to close as a short sale.

That information would only be available from the seller or their agent. They would have to have an approval
from the 2nd mortgage too in order for this home to close as a short sale.