If a property is being sold as a short sale, is the first lienholder/lender obligated to pay the second lienholder anything? 

thanks j Scott I have another question know since I know about this its my obligation to disclose that to the buyer i have a contract with how would you Handel this 

Here, you would not be under any obligation to use the listing agent to complete the sale.

They want to see that you have enough money to fulfill your current obligations as well as your new mortgage.

I have a very high debt to income ratio, and even though all of my properties are cash-flowing significantly, and my debt obligations are more than covered each month, I'm having a hard time finding anyone to lend me any money to do more deals.  

If Seller is unable to convey to Buyer a marketable title, Buyer will have the right to terminate this agreement at the same time returning to Seller all title evidence and surveys received from Seller, or Buyer will have the right to accept such title as Seller may be able to convey and to close this transaction upon the terms stated herein, which election will he exercised within 10 days from notice of Seller's inability to cure.11.Loss or Damage:If the property is damaged by fire or other casualty prior to closing, and cost of restoration does not exceed 3% of the assessed valuation of the improvements located on the Property, cost of restoration will he an obligation of the Seller and closing will proceed pursuant to the terms of this is Agreement with cost thereof escrowing at closing.

Sometimes, people default on their obligations, not because they bit off more than they could chew, or because they didn't prioritize responsibly (and bought a shiny object with their tax refund rather than putting it in the bank), but because of something out of their control, like an accident, or an illness.

I am currently looking for contact information of the investor "Sandy Canyon Corporation" or who might servicer there loans. 

-Am I obligated to hire a licensed loan originator?

@Bryan Hancock, I do know that we don't have state income tax, so I guess the question I was really trying to ask was are the same percentages for taxes that are applied to my corporate salary applied to this business?