What to do about pending foreclose and working with lender instead of seller?

[Aces]

I picked up a property for a price that was not so great and was unable to wholesale it to any of my investors. After getting the property on contract I was unable to get in contact with the seller to re-negotiate the purchase price so I lost the property on NOV 16th when the contract expired. I still have heard Nothing from the seller, but the mortgagee holder has contacted me about the property. He's worried he will haft to foreclose on the seller.
 Should I renegotiate the price of the property and explain why I was unable to unload it before?
Do I haft to wait for the mortgagee holder to foreclose on the buyer in order to put the property under contract again?

[tatertot]

Sure, if the mortgage holder has contacted you, take the opportunity to discuss a short sale with him.

You'll have to have the seller's permission to do a short sale, but if he doesn't have to do any work for it and it gets him out of a house he can't pay for, he should be willing to sign.

Price on a short sale is always negotiated with the bank, and here you've got the bank all wanting to talk to you so badly that they are calling you.

[ericmedem]

Your going to need to get a authorization form signed by whoever is on the mortgage in order for them to give you any of the details. 

Sit down with the sellers and let them know the advantages of going with a short sale over doing a traditional foreclosure.