It sounds like there might be a CATCH 22 in that new revision:
I doubt that there are too many instances where the Homeowners is defaulting on the 2nd and NOT the 1st.
Also, notice the wording about the "Agreed Upon Amount"; usually the 2nd lien holder hasn't agreed to anything; they are simply told that they are getting NOTHING, and that leads to the Shortsale being held up.
It sounds like there is a lot of GRAY area here. I would not personally want to put it to the test:
What will happen when the 2nd Lienholder notifies the 1st Lienhold that you are defaulting?