Motivated seller and short sale potential

I've started a direct mail advertising campaign to find motivated sellers for my new real estate venture. Each week I get a list of lis pendens filed (people going into foreclosure). I also use First America real estate software to create mailing lists of absentee owners. In our county there are about 50 to 70 lis pendens filed per week. To date I've mailed out about 250 letters and received 3 phone calls (1.2% response rate which is supposed to be a typical range). Today I met with one of the callers. She gave me all her original documents, essentially freezing out any other possible investors. She just wants to get rid of the property and doesn't care about making any money.

This property is one which may be ideal for a short sale. The owner originally took out a first mortgage and HELOC from the same lender. The HELOC was a 5 year balloon due last June. The lender diddled around about refinancing the HELOC and is now foreclosing against it. Meanwhile three years ago the homeowner took out another mortgage against the property which is in a third position. The payments on the third are up to date, but the third is in a weak position. The total of the three mortgages is close to the actual value of the house. So the third mortgage, in order to save their equity will have to take over the first two loans at the auction or hope someone else does.

I'm hoping to negotiate with the third mortgage and see if they will accept a short sale, in other word, try to pay them 10 cents on the dollar owed them. At any rate, I am in the catbird seat on this deal. The seller has put her complete trust in me and the clock is ticking down on the third mortgagee.