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Hi everyone, 

I have a question regarding short sale in redemption period. Since this happened to me, I'm guessing this situation is not uncommon. 

We were in the process of buying a short sale house, which has two loans on it. The process dragged on (because 2nd is not approving) and the house actually went to the sheriff's sale while waiting. In michigan I guess there is a 6 month redemption period. In this redemption period, 2nd lien holder approves and we closed the short sale shortly after. That was great. But I always wonder about the following question: 

If the house is sold at the sheriff's sale and the sheriff's deed is given to the first lien holder, why does the 2nd lien still matter at this point? Certainly if I'm the second lien holder I would approve the short sale at this point because if I don't I would get nothing. But in this redemption period, couldn't someone just go ahead do a short sale deal with the first lien holder alone? Anyways, maybe some one can help lend some insights on this :). 

Thanks, 

David