Short Sale and Judgement Lien

[burtsbee]

What is the name of your state? New jersey

I am trying to make anoffer for a short sale with my bank/mortgage to avoid a foreclosure however we have 2 collection agency judgement liens on property that i am aware of but they do not show up when i went to the county clerks courthouse office. Can i offer the short sale as planned and does the collection agency have any ability to stop the short sale once the bank agrees to it. I may actually have a few dollars left over in equity for myself even after the short sale, do i get to keep that money and its not nearly enough to cover the 2 liens, although i am thinking they may not even know until the short sale has been completed. Looking for advice if A.the short sale can be cancelled by collection agency and B. is it legal for me to keep any money left over

[FlyingRon]

No buyer in their right mine would take a sale (short or otherwise) without requiring all the liens to be cleared.

[burtsbee]

Isnt it better for all involved, bank and myself, to avoid a foreclosure and how could i/we do that if property can not be sold as i unfortunately cant afford the payments any longer. i cant sell the property and pay off liens as there will not be enough money from sale.
Is foreclosure the only option ?
As that doesnt seem fair to the bank who holds the mortgage, who i could have paid in full if i am able to make a quick sale. I am sure they do not want another foreclosed property on their hands to deal with, especially when they could be made whole. How could a collection agency be allowed to screw a bank holding the 1st mortgage like that, seems like to me the bank gets screwed worse than me !!

[FlyingRon]

A short sale is just expedience for a lender when their mortgage is the only thing in play. The mortgaging back can only waive their own claims on the property for the "lesser value" of the sale. They can't say to you, ok we'll take $20,000 less than we owe and screw the other lienholders.

The foreclosure proceding makes sure things get done to protect everybody (notice,e tc..).