Hi Bill- Where do you see a $685K asking price? I didn't see that- but maybe I'm not registered with Realty Trac. I assume this is listed in MLS with an agent?
I don't think its a short sale candidate if they owe about $300K and the house is truly worth between $525K - $575K. Short sale would be if they had to sell for less than what they owe on it, and needed to get lender approval on that.
The lender knows what it is worth and they and the seller are just trying to get as much as they can for it.
Thanks, and good luck,
Ken L.... more