Now i'm trying to negotiate with Ditech to pay them less for the redemption certificate that they bought at sheriff's sale.Has anybody tried doing it before?

If they can only afford 1200 a month but they need 1400 per month and they won't consider going elsewhere than you are going to waste your time.Seller needs to be qualified over the phone as to having enough motivation before booking appointment.In Person: As Brian and the other experienced negotiators oftentimes say, it is important to get in front of these people.  

I figure if I use the MLS4Owners instead of hiring a listing agent, and negotiate that the sellers pay the buyers agent commission (why should I have to pay for their hand holding needs?)

The buyer will pay the seller a "monthly mortgage payment" with whatever terms are negotiated at the time of sale. 

The property in question is a fourplex, asking price 325k, I would need a 10% down payment and maybe closing costs but I'll work to negotiate those with the seller

I am in the process of negotiating, and this guy wants an earnest deposit of 1k, which I do not have.  

I would find out what they bought the property for, how much they negotiated off the list price, get a complete rehab scope so you know what work was done to the property - and what prices they paid, and know what the after repair value comps are.  

Check with a local attorney.Presuming it is valid you may be able to negotiate it down.

Thanks to a good agent and a lot of negotiating, I finally have my first property under contract, it's a 3/2/2 in a really nice neighborhood.

The price is $320,000 (the owner won't negotiate) but the building needs extensive work.  2 of the apartments are partially gutted and need renovation.