There are generally 6 different types of loans. Each type has it’s own unique features when negotiating a short sale. Fannie Mae and Freddie Mac - These loans will accept 92% of the BPO value as their NET proceeds. FHA – These loans are one of the easiest to negotiate. The lender does most of the work for you and they will accept 82% of the BPO value as their NET proceeds. VA – These are like FHA. The lender will accept 88% of the BPO value as their NET proceeds. Conventional - Negotiating these is a little more difficult. Conventional lenders do not have pre-set percentages of the BPO. It can range from 80% - 100% of the BPO and it also depends on the lender. The key is to get the Mitigator to reveal the BPO price and or get a counter offer. Make sure that it is clear when the Mitigator counters that the figure they give you is either an offer price or their NET proceeds. Each Mitigator has their own way of countering; it is up to you to find out what exactly they are asking for. NEVER ASSUME. Hard Money – These loans are generally in a junior position. Hard moneylenders are very savvy investors and know the business. Discounting these loans can be extremely difficult. Private Money – These loans take many shapes and forms. They could be a seller holding a 2nd mortgage, a family member, a friend or similar circumstances to hard money. By far these are the hardest to negotiate because the person(s) loaning the money have an emotional interest in the borrower or property. If any of your clients have one of these loans, negotiate this first as you could be wasting your time if they won’t negotiate.