How's your short sale moving along?
To answer a coupe of your questions, usually the second loan will be negotiated first, that way when the figures get back to the first mortgage holder they will have a better idea what will be their bottom line. It is a little easier that both loans are with the same bank, but still no guarantee of success.
I am starting to see a lot of short sales taking only 30 to 60 days to complete. From your questions hove it sounds as if you have had some good counsel from your agent and you are very educated in the process.
Hang in there! Short sales are moving along nicely these days!
To understand the short sale process, please know that generally short sales take 4 months, if not longer in total processing time. If the Seller is being cooperative, and the listing agent knows how to manuever a short sale, and there is no outsourced negotiation company, and the attorney is well versed on the topic as well, the process will take less time. Generally, both negotiations occur at the same time, however, the 2nd lien holder will place their file on hold, until the payoff value from the first is stated. It will be at that time, that the 2nd lien holder will begin negotiating for the 2nd lien. But, at no time, should you ever think that the short sale process will go through to completion unless you get everything in writing.
Hope that helps! Good Luck!
I have seen repeatedly that the 2nd lien holder changes their mind last minute and can surprise a deal at the closing table. Get verification from the primary lender that in fact the 2nd lien holder is satisfied with the amount they are getting at closing and the 2nd mortgage might still pull some shenanigans. My anecdote goes as follows...All is good, approved and set, and then the 2nd mortgage decides they want $5,000 instead of $3,000 on the $10k 2nd lien the day before closing. Buyer is then put in the position of having to bring an extra $2k cash to close on that day.
My suggestion is don't plan on moving in on closing day and taking possession with movers etc. The 2nd lien holder has a lot of power as a spoiler and often that is the only way they can recover some of their loss. If you are getting a spanking good deal, it might be worth it to assist the seller in paying off the 2nd lien differential to keep the deal together. Have a really good real estate lawyer, not a divorce or DUI attorney, but someone that does this day in and out.
Having both loans with the same bank often does not make much difference. Even if the loans originated with the same bank, they may not still be witht the same bank. Or if the bank is a larger bank, the loans are handled by different departments with different responsibilities and accountabilities. If you are going to bid on a short sale with two mortgages you need to be prepared to wait 2-4 months to get a final answer--and understand that it is a gamble and there is a chance you will need to start over.
Good luck to you in your efforts.