Here is an example of a short sale approval with two lien holders for Bank of America:
You can read and see what BOA allotted the second lien holder -
Now the tricky part is to get the second lien holder to ACCEPT the amount they are being offered by the first lien holder. Sometimes they hold out for more money and then you have a problem on your hands.Greentree for example is known to want close to 20% of the loan balance. You have to make sure each lien holder is satisfied or you will have NO SALE.
Sometimes you may get enough to pay off the first lien entirely but not the second and in that case, you are only going to do a short sale on the second lien.
The companies holding the mortgages will negotiate with one another
about how much each will take. You will not have a voice in their
Best of Luck,