Short sales can be difficult enough getting one lender to accept the payoff of less than the amount owed. Add a second mortgage to the mix and the task of obtaining the approval becomes more difficult. Most second mortgage holders should be willing to accept a token payment since they would receive nothing anyway if the property went to foreclosure. Many however are trying to hold out for more money and playing a game of chicken with the first mortgage holder. Unfortunately, the end result is that the sale gets held up and sometimes is lost due to this standoff.
Click below for entire article from the Wall Street Journal.