Short sale simply refers to a process in which the debtor resorts to selling his house for an amount which is slightly less than what is actually owed to the lender. In most cases, what normally happens is, a mortgage is taken against the property which is set for sale. As strange as it may sound, there are a few cases in which a person may have two mortgages in a short sale.
In situations where there are two mortgages in a short sale the opinion of a professional short sales attorney is very important. A myrtle beach estate planning lawyer can be advised in these situations. This is because all of the proceeds are used to settle off the first lender. The second lender on the other hand is usually required to exercise patience as his dues will be settled immediately after. It is very common that after paying the first lender, there is usually no cash to pay off the second mortgage. In fact, in case there is any left, it may not be enough to settle with the second lender.
Assuming the cash remaining is not enough to settle with the second lender, the next cause of action is either to ask the debtor to shell an agreed amount or better yet simply forgive the debt. In most cases however, the second lender is known to compel the debtor to let the house be foreclosed. This however, is not the only option; another equally viable option is having the second mortgage lender release the lien only by filing a deficiency claim.
If the second mortgage amount is not high then there are high chances that the borrower may easily be spared. In some cases however, the lender may realize that the chances of recovering the loan is very slim especially if the borrower is having trouble paying off after filing for bankruptcy or constantly tries negotiating for a certain percentage.
The above mentioned possibilities usually differ from one lender to the next. The value of the property in question also usually affects the outcome says Woody Durant, a local real estate attorney in myrtle beach. Take note, in the event that the second lender does not budge and instead more focused on foreclosing the home, it is strongly advised that you engage a professional short sales attorney with a lot of experience to provide much needed guidance.