[quote=pepsi][quote=socrattt]
but I recently heard of a situation where the 2nd wanted nothing to do with the short sale because they found the buyer already had another mortgage he was current on. The property ended up going through the foreclosure process and after looking at the numbers the 2nd didn’t make a dime.[/quote]
If you are the 2nd lien holder, would you agree on a short sale that give you 10 cent (or even 1 cent) on a dollar or would you go after the seller for the full amount after the auction ?
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I think maybe you misunderstand a lienholders rights with regards to deficiencly judgements. California is a one-shot state. Either the lien holder goes after the property through traditional (non-judicial) foreclosure (NOD through trustee sale) or after the borrower through a judicial foreclosure process. Can’t do both. Once there has been a foreclosure auction, it’s over with. In California, a deficiency judgement may not be obtained when the property is sold through a non-judicial public sale or if the foreclosure is related to a purchase money mortgage.
