Mark, I was asking Realtors, but since you asked I will answer. Most of your question is answered in my post, this is for the Realtors who are unable or unwilling to complete the process. The homeowner doesn't usually negotiate anything, and inactuality against my advice, I find them to not want to speak the lender at all. The Listing Realtor is the party who typically puts a complete package together and submits to the bank, if it is not complete or at least partially complete with initial required items to get the process rolling, this can take several months and get the Seller no place except Foreclosed. This process is definitely not the 2 steps you listed, and if certain items aren't completed, the Realtor could potentially be liable and the homeowner foreclosed. The buyers agent typically waits along with the buyer and actually does nothing in regards to the short sale process. Also, as far as only being between the bank and the homeowner, you missed about a dozen people, don't forget the HOA, the HOA lawyer, the 2nd mortgage holder, the county property tax, title company, seperate lien holders who filed against the property, such as the pool the never paid for, and their lawyers, etc.
So the the number one reason to refer me anything is to get paid something, instead of nothing because an incomplete short sale package will only lead to an incomplete short sale and eventually a foreclosure. Take care.

short sales are negotiated between the homeowner and bank,,,,and only after, 1, the homeowner receives an offer below payoff and 2, after the homeowner proves to the bank that he is broke...

so, why would any agent need to refer you anything if 1, they have the listing or the buyer and then the homeowner decides to short sale his house??