When should you use a third party short sale negotiator?

Handling short sales was challenging...in the beginning. 

There surely was a learning curve getting to do it the first time. Thank goodness for the wealth of information on line! Also, as short sales started becoming a more common occurrence, even in our coddled island community, we were introduced to how-to seminars where we picked up even more information.

But at what point would you want to turn over the short sale negotiation?

If there is only one lender, it's easy as pie, comparatively speaking.

But if there are more lenders, particularly if they are two DIFFERENT lenders, it becomes tedious, challenging and frustrating.

Lenders who won't approve short sales

My first experience handling two different lenders was horrendous. Neither lender wanted to open the file unless there is an offer on the table.

So I hurriedly gathered all the pertinent information (financials, etc.), listed and staged the property, held broker's tours and open houses, created a visual tour. Received a really, really good offer that I happily turned in.

Then CRASH and BURN! Downey Savings is the first lender, and they sold the note to Deutsche Bank who will not do short sales or deed in lieu of foreclosure. There was nothing we can do. So we let it go. But why couldn't they have told me this from the beginning?

SEE:

• OUCH! Downey Savings won't approve short sales
• Downey Savings + Deutsch Bank = Impending Disaster

Second lender plays hard ball

Then there is the case of the second lender who will dig in their heels and demand a pay off equivalent to  5-6% of purchase price. I have one such short sale where the both loans are with Bank of America. Second lien holder is unyielding. So we are negotiating with the buyer to make up the difference. There is hope....

Third party short sale negotiators

Throughout all these...I just can't picture myself going through the hassle of follow ups, negotiations (arguing, begging, strategizing). I want to concentrate on other things and leave this part (especially the frustration) with the negotiators. Besides, I want to keep my blood pressure from boiling point.

So here are the two that I have used, and will use again. They charge a fee for the service, against the commission on the listing side. No charge if/when the escrow doesn't close.

Mortgage Resolution Services (fee is 30% of listing agent's sales commission)

Short Sale Advantage (20% of listing agent's commission, and must use Placer Title Company)

Do you have other recommendations?