Short Sale to 2nd lien holder

[Jose Tovar]

I have SS clients who want to sell to their 2nd lien holder who is an associate of theirs. This individual put up 100k to help with the purchase/construction of the house which belongs the couple who are my clients.

My question is will the bank have any issue with selling to the second? I am concerned that they will consider him a party to the home and should not be allowed to profit from its short sale.

Thanks