Short Sale Deal Question/1st and 2nd/Pretty House

I have some quick questions about a deal that I am now in the middle of…

Am attempting to do a short sale/quick turn of a property and would like to have some help with the next step/negotiation.

Have already collected and recorded the deed into a land trust (I live in Florida)
Approximate retail value of home is 165k

First mortgage beginning foreclosure procedures has a current balance of approx 130k
Second mortgage has approx balance of 30k
Back taxes are approx 5k

Requesting an interior BPO would normally be the next step right? but, the property looks very nice and well maintained. The only negative about the property is that is overbuilt for the street/neighborhood.

What would be my next step?

Do I begin to negotiate with the 1st or 2nd or both simultaneously?

What would be the best way to approach the first given the fact that the interior and exterior of the house present very well.

What would be the a reasonable expectation of discount on the first and second?

GREAT Question!!!

As long as the first and the second are Not a F.H.A. or V.A. loan do them both at the same time! I Always always remind them its going to cost 20% to take this property thru foreclosure!

don’t even bother wasting your time trying to short sell a insured loan!

Hey reoconsultants, A quick side question, please. Above you posted:
don’t even bother wasting your time trying to short sell a insured loan!
What are you considering as an “insured loan”? Do you mean Private Mortgage Insurance (PMI), that is the insurance paid for by the borrower for the benefit of the lender, and other similar types of lender insurance policies?
If so, how does this insurance work and how does it affect the short sale process of REO properties? Thanks in advance for any advice.
Regards, Longshot (a new guy)