Short Sale with more than one lien? The key is: settle with junior lienholders if you can!

I don't know what your experience has been with short sales, I've been thrown right in the deep end working on many since I got my Real Estate license in 2009.

The most valuable thing I've learned about short sales with more than one lien?  Work out a deal with the junior lienholders, getting those liens off the books completely if you can, so that you only have one lien to deal with later. 

What do you guys think of this approach?  I've had success with this, especially with very complicated short sales that would probably never close otherwise.  Often junior lienholders are only offered 6% of their outstanding balance or like only $1000-$3000 at most.  I understand why this would not be appealing to these banks.

For example, say the 2nd lien outstanding balance is $13,000 and the firstlienholder is saying they will only give them about $800.  I understand that I am looking out for my seller client's best interest, but part of their best interest is to get this thing closed rather than go to foreclosure.  And they do owe this money.  This is money they borrowed.  I understand that they may be in financial hardship but when did we get into the mentality that we don't have to pay back money that we have borrowed if we hit on hard times?

I think it is still better for the client if they find a way to settle with the junior lienholder say for half of what they owe, rather than get a foreclosure on their record.  I of course always make sure they know that they could get a 1099 for the forgiven debt that they might have to pay taxes on.  But if there is a way they can settle with that junior lien whether it be with a payment plan or borrowing from a relative or wherever they get it does not matter to me, then we can move forward with the short sale with only one lien on the books.

People might think I'm not looking out for my client's best interest if I negotiate this sort of deal for them.  I think that I am definitely providing the best scenario for them.  I've had several happy clients who were able to move forward with getting the problem of a house they can't afford behind them.   What do you think?