There is an interesting current thread started on activerain discussing who should be doing the short sale negotiating.

There were various answers - the agent, the broker, someone hired by the broker, the title company, an attorney. 

I suggest a combination.

Getting short sales approved is not that hard if the buyer's offer comes in near the appraisal.  Getting a release from a deficiency in writing is much harder. Doing all that and getting the approval while the buyer is still interested, is even more impressive.  

Even though I am an attorney - I advise the Realtors in my brokerage to outsource the clerical part of the short sale package to someone who has a proven record of getting short sales approved in a reasonable period of time. It may even help if the submission person their own negotiatior at the bank.  For instance... we frequently get to work with the same negotiator at Countrywide, so I choose to do countrywide short sales myself.   

The toughest part of the clerical side of the job is the time on the phone.  No reaon that can't be handled by any diligent person.  But, what happens when the approval comes or the negotiator wishes to talk terms?

In my opinion that is when the lawyer should get involved.  Especially if the terms are less than a full release from deficiency.  I have no idea how a non attorney can tell anyone to accept anything less than a full release from the deficiency and not be practicing law without a license.

I have found that letters from an attorney - discussing the lender's duty of good faith under california law, backed with specific requests for info and clarification of the approval, can change the lender's negotiating position substantially. 

For those who do this without attorneys  -  are you allowed to cross out words on your Realtor forms?  Are you allowed to change the terms of Escrow?  Do you go over your client's loan docs and cross out paragraphs related to remaing loan balances?  Do you advise sellers about federal and state taxes?  Do you really tell your client to sign the lender's approval and close?

 short sales