For homeowners facing foreclosure, problems can occur regarding a short sale & second mortgage. When a short sale occurs, its natural for the homeowner to think that they are free from all debts. The truth, however, is that certain factors can change things for the worse. In particular, having a second mortgage could potentially make the short sale ineffective. Since there is another loan associated with the home, the short sale does not fulfill its purpose of averting foreclosure. In actual fact, only the first mortgage will necessarily be nullified, still leaving the homeowner with another mortgage to pay off. The short sale second mortgage problem can sometimes make it harder, or sometimes even impossible for the foreclosure to be avoided. Yet still, some lenders may, at times, be willing to offer a short sale that extends to the second mortgage.