Purchasing a short sale that I may be listing.

[Aref Shehadeh]

Hopefully the right forum here. I'm beginning here in my search for information.

I had a homeowner reach out to me from a direct-to-seller marketing campaign looking to sell their home. They are low on the equity side, but are looking to get out of their property fast and are OK doing so at a discount. Unfortunately their loan balance is quite high in relation to the property value. The property could be a great wholesale or rehab.

The sellers were given a letter stating they could initiate a short sale (a loan modification was denied). I am a licensed realtor as well and could help carry forward the process for listing the property as a short sale, but I am looking to acquire it myself. I know that the property must be listed on the open market and I want to avoid any ethical issues associated - any thoughts on the best way to handle purchasing this property at a lower price? I would have to submit all offers to the seller if I were to list it. I'd like to avoid the short sale if possible since it is currently an off-market deal. Has anyone had success negotiating with the bank outside of a Short Sale? In other words, what are my options for acquiring this property at an amount less than what the seller owes?

Coming short on options here...