Can I short sale a house without approval of the 2nd mortgage?
When you chose to do a short sale all mortgages are affected by this decision.
Many homeowners are only concerned with the short sale of the 1st mortgage, but you can not short sale a house without the approval of the 2nd mortgage.
When you short sale your home and there is a 2nd mortgage or even a 3rd mortgage they are all in the position to deny or approve the short sale. If one mortgage holder disagrees with the short sale, or even the terms and conditions of the short sale then short sale is DEAD.
The 1st mortgage has the strongest position over the junior mortgages, but the 2nd mortgage also have power. The 1st mortgage may determine as part of its approval that the 2nd mortgage can receive no more than "X" dollars. If the 2nd mortgage insists on holding out for "Y" dollars a greater sum than "X" dollars there can be no short sale.
Often each mortgage holder will want to see what the other is offering. Therefore it is up to the short sale negotiator to supply these documents to the respective parties.
Therefore, it is not possible to short sale a house without approval of the 2nd mortgage.
Check out some of my other blogs:-