All current lien holders have to agree to the short sale. If all lien holders fail to agree then your short sale would not be successful.
Each lien holder must agree to a certain amount of loss they would be willing to accept to facilitate the sale of the house. The first mortgage would not take the full loss.
Some liens that are in a second position might lose their entire investment in a short sale, therefore they would not accept this complete loss.
I hope this has been of some benefit to you, good luck.
"FIGHT ON" .
The liens will have to be paid at closing and any lien other than the mortgage, will not be paid by the bank. The seller will have to pay them.
of course. All liens on the property must agree to the short sale.
kNOW THAT liens WILL CLOUD YOUR TITLE AND PEOPLE CAN'T GET TITLE INSURANCE.
END OF THE SALE.