The 2nd loan will also be negotiated during the short sale. If the 2nd loan is with the same lender, then usually they are negotiated together. If the lenders are different, the 1st lender will allow for a certain amount to go to the 2nd lender from the short sale proceeds. The 2nd lender will have to agree to that amount or might ask for more. Feel free to contact me for anything. I also work in Santa Clarita/Newhall area. You may also want to read about the law SB458. More information is available here:
Sara Mehrpouyan CDPE
Specializing in Short Sale & Foreclosure
Best of luck to you.
Current legislation relieves you from future financial obligation if your short sale is approved by all the lien holders.
Having an experienced, short sale certified agent will make the process easier, if you do decide that a short sale is right for you. Such agents have the training, experience and contacts to handle the nuances of a short sale...particularly a short sale with multiple loans and banks.
Please consider all your options carefully. If you have questions, we are happy to assist, and always at no charge. Wishing you the best of luck.