The problem is that both bills should be corrected as follows: If a lender releases the mortgage - a mortgage or deed of trust - a security tool is only one version. There are exempted from the obligation of the loan itself. Therefore, a lender in the event of a short sale, some say "I short sale and the time they get X dollars, authorized by the mortgage'm with a new holiday buyer's lender. Safe" but the original lender says: "I (the difference between amount owed and the amount received) to advance to the lack of reserve."
Lenders sometimes are not even clearly say, just do it. As a rule, only after that the sellers legally still owe money to find. (Another good reason that a professional qualification, to review the short sale lender approval.)
As mentioned above, the 931 SB last year on the first loan fixed the problem, not for junior liens. The problem is still. Second (or third or fourth or whatever) to holders of notes, short sale after some consideration, but often not free for the rest debtor commitment then you can track the recovery of loans, or more often, they are a collection agency - with big discounts - to sell the loan.
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