Second Lien Question-Short Sale

[Sandy Uhlmann]

If a property is being sold as a short sale, is the first lienholder/lender obligated to pay the second lienholder anything?  I had heard discussions that the first lienholder usually pays the second lienholder $3000 or so.  Is this correct or is this just a courtesy?

[Devan Mcclish]

No, the first lien holder does not have to give anything to a second lien holder if the first lien isn't paid off.

Ex: House has a 100k mortgage held by Bank A in first position and a 25k mortgage in 2nd position to bank B

You want to buy it at 75k. IF it's approved then the 25k mortgage gets nothing because the first mortgage wasn't satisfied