Here's the short answer: The second lien holder will also have to agree to participation in the HAFA program. If the second lien holder will not release the lien the sale will not qualify for HAFA, the borrower may still qualify for a "traditional" short sale, however.
It is not always a "done deal" that second lien holders are going to participate in HAFA sales since it requires a complete release of lien with a capped payment to them of $6,000. In many cases, many second lien holders want or at least will attempt to demand more in the form of cash, continuation of payment or modification of the loan to release the lien to allow a short sale to take place.
Technique...since many are now using a formula based on a percentage, see if it is equal to or below the cap. Negotiate from there.
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