Speaking of that I have a preapproved short sale that is on the market. The lender turned down an offer less than 30 days ago and now has dropped the approved price to less than what that offer was for.
I would anticipate that they put the property on the market at or slightly below market value because they do not want to own the property. They will get a BPO or appraisal to establish value and deal with it from there.
With banks you never know what is going to happen so all you can do is hang on and wait.
The bank will list the property based on an agents BPO value and possibley an appraisal. Most often they list them for less than the mortgage payoff. If you think it's too high when listed then wait about 30 days and they may reduce the price if they get no offers.
All the best,