Ljsamora:

Short sales are complicated. The first mortgage has to agree to take a certain amount and to paying the second mortgage some amount of money. If the second mortgage is a true second mortgage and not a home equity line of credit (HELOC), it will be wiped out if the house goes to Trustee's Sale. If this happens more than likely the second will get nothing. This gives the second mortgage an incentive to agree to whatever the first mortgage will pay them. The second can still ask the seller to sign a separate promissory note to repay the balance or to pay the second mortgage money at close of escrow to satisfy the second. Sometimes if the seller is paying money to the second and the first mortgage finds out they may cancel the sale. The first mortgage holder has to approve the settlement statement called a HUD1 so they will see the payment.

A HELOC is completely different. The HELOC can go after the seller after the Trustee's Sale. This can make this type of second less agreeable to accept a certain amount and forgive the rest of the debt. They may also ask the seller to sign a new promissory note for the balance and pay additional money at close. The only way out of the HELOC is to file bankruptcy. And often the seller does not want to sign a promissory note

Depending on what type of second is on the property the seller may decide to let the property go to foreclosure. So it is not just getting the second to agree. Everyone involved in the process has to agree.

Have your realtor check with the seller's realtor to confirm what type of second is on the property.

Good luck!

Pat Hune
1st Southwest Realty

Ljsamora- It all depends. There is no set time for this process. However, I have seen 2nd's respond in anywhere from 2-8 weeks. It is a wide range but you should have been told this by your agent and maybe you have. I know it can be nerve wrecking but the short sale process is not designed to be a smooth one. The other thing to be aware of is that they may come back and say yes but only give you 2 weeks to close. This may put you in danger as most lenders cannot close that fast.

In that event, contact me as we are closing in 2 weeks. http://www.tendayclose.com