The lender may approve a short sale depending on how long the home is listed, the value, and other case by case facts. If the home is currently up for sale lenders some times allow a short sale as opposed to a foreclosure. Are you sure you are unable to secure the loan on your own? There are a variety of financing options available for both you and your parents that may not require a down payment of 20%. Please contact me with any questions.
Jason S Hill
First Mortgage Corp
There is always a chance, but short sales are on a case by case basis and every short sale's details are different. You have to A) first speak with the lender who holds the mortgage on the home and B) speak with a lender willing to lend you or your parents the money. If you do not qualify yourself then your parents will need to purchase the home under investment property guidelines (likely 20-25% down payment required.