If you are upside down on your home and have a second mortgage (or multiple mortgages, for that matter), a short sale can provide you with the opportunity to negotiate away your second mortgage and much of your debt. If you work with a short sale expert in San Diego, they can help you to successfully negotiate away not only your first mortgage, but your second mortgage as well.

When you short sale your home, the first lien holder will give money to the second lien holder so that the second lien holder will release the loan thus allowing the short sale transaction to be completed. The second lender will not receive the full amount of the loan that they are owed; typically it will only be a small portion, like 6%. You may be wondering why a second lien holder would accept only a small percentage of what they are owed, which is a very valid question. Most second lenders accept the money the first lender offers them in a short sale because, should the home go to foreclosure instead, the second lien holder won’t receive any money at all. They are more willing to accept a small amount of money now instead of taking the risk of getting no money at all.

Each short sale is different, as is each lender and investor, so it’s best to contact a short sale expert if you have a second mortgage and are considering a short sale. Sometimes short sales with multiple mortgages can take a bit longer to get closed because of the extra people involved, so in order to begin the steps towards financial freedom sooner, consult with a San Diego short sale expert immediately to discuss your specific situation and see how doing a short sale can benefit you financially in the future.