Negotiating a specialized deal with a major bank

[Greg K.]

I know it's quite common that when the owner of a property gives you full permission to negotiate on their behalf, you might find yourself in contact with some person, who is in turn, representing the interests of a major international bank, that holds a significant amount of interest in the property's equity via a mortgage(in this case a securitized, sub-prime, sold and re-sold many times mortgage).

It would be very common in this situation to arrange something like a Short Sale.  However that particular type of arrangement was not suitable, yet the bank is quite keen on liquidating their asset.  So they said to me:   "Give us an offer.  Make a proposal"

It seems as though they are willing to concede anything imaginable, but I have to draft the proposal.  No problem I will.

Question:  When sending a preliminary proposal over email, summarized in layspeak, would adding the standard 'This email in no way shall be interpreted as a contract to.....etc" be sufficient protection from even the most advanced legal 'gotyas' that might get thrown at me?   Has anyone ever experienced anything damaging that survived such a clause?  The party negotiating for the bank is an attorney and is currently in the midst of some rather novel litigation against the property owner.

I already plan to have an attorney that specializes in this field, licensed in my state look over the proposal before i formally offer it.

Can anyone recommend a resource for reading up on best practices and/or precedent for such situations?  Be it speaking with the other side over the phone, via email, in front of a judge, or in lieu of in front of a judge?  (all of these scenarios are plausible in the near future).

Thanks!

[Greg K.]

@Wayne Brooks

Your informative response is much appreciated!

I just typed up a few paragraphs and then all was lost when attempting to insert a quote.  In short, I agree that the current litigation ultimate purpose is to make another attempt at FC, but properly.

Also many of these procedures and laws are very nuanced and state specific, most of what you are speculating does not apply because the attempted auction occured almost a year ago.  It was rescinded within a week, because the bank really did make a big mistake so state authorities intervened.  And nothing has been recorded, that I was able to find, in 4 years.  Perhaps there's something a local expert would uncover. 

I mentioned a federal statute in hopes of you elaborating on:

"

there typically is no way the bank could take a reduced pay off u less done specifically through the short sale process, due to federal law, mortgage insurance requirements, etc.

"

But I think we understand each other, as in , this is not exactly a typical case.

Thanks again,

-Greg