In my 4+ years experience in doing short sales I have never seen a foreclosing lender approve an offer with a sales contingency. If you had a solid contract and all the buyer's contingencies had expired it might be possible, but still very unlikely.

I am hesitant to use zillow for valuations. It might be a good indicator of trends or of relative value, but not of current market value. Your Realtor should be able to provide you with recent sales in order for you to make a decision.

On short sales, the asking price is often meaningless. If I were in your position, I would get the sale of your current property completed first, then use the proceeds from that sale to make cash offers on bank owned or short sale property. The home you are looking at is likely going to fall in value, buy nobody knows where the bottom of any market is until it has already passed.

I urge buyers to be patient in finding a deal, but be prepared to move quickly when you find. I sell bank owned properties and know why some agents get their buyers the "deal" and why some don't. Often it is not about price, it is about staying on top of things and knowing how the banks negotiate.

Thanks

Phil Hanner
Concord Real Estate