Short sale guide
Can I do a short sale with two mortgages?
Yes — a short sale with two mortgages is possible, but it requires negotiating with both lenders. It adds complexity, not impossibility.
How the second lender fits in
Both lenders have to approve the sale. The first mortgage holder gets paid first from the proceeds. The second lien holder typically negotiates for a smaller amount — sometimes much smaller — to release their lien so the sale can close.
Common second-lien types
- HELOCs (home equity lines of credit)
- Home equity loans
- Piggyback second mortgages from the original purchase
Why this is worth doing right
Mistakes with the second lien holder are one of the most common reasons short sales fall apart at the closing table. Experience here matters.
Next step
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