I send the short sale package my marketing proof and a HUD 1 with the amount to them. If they try and say they will not accept this I let them know that the 1st is taking a huge loss. If they do not I can assure them that the 1st will only offer them 1,000 dollars. I want them to feel that I am working for them. This will not always work, if not stay calm and start working with the 1st. Then offer them what ever the 1st is willing to give. I always list these homes for 6% that way if they want me to take a percentage off I am already prepaired to take 5%. Make sure in the commision comments of the listing I I have "3% subject to lien holder" That way you will not have to take the full cut if you need to reduce to make everyone happy.

BAY, If this is your 1st SS, you might want to pass on this. It's REALLY, REALLY tough to get a SS approval when the Junior lienhold is different from the Senior lienholder. If you want to pursue it for experience sake, go for it, but warn your seller that this is definitely a long shot!

Also, have you told your seller to talk to their CPA or tax advisor about tax ramifications if they get the 1099? Sometimes the seller doesn't want to even do a short sale once they realize how much it may cost them in taxes. Just proceed cautiously!
(chk out the other post about WAMU Short Sale... alot more info there on the Short Sale topic).