Any time you encounter a short sale one of the things to ask the listing agent is how many loans are on this property? if there is more than one, it is doubly difficult and nealy impossible to get the short sale approval. If it's with the same bank, the chances are better.
Short sales take a long time to process (the loss mitigator won't open a file until there is an offer on the table, and then it will take weeks before you get an answer of accept, reject or counteroffer).
Believe it or not, the number of buyers are increasing (check out http://www.DQNews.com, and you'll see reports relative to our area, broken down by zip codes) as the prices are decreasing.
However, buyers are hesitant (as are the agents) to limit their search to short sales. The homes that are offered as regular sales have had to price their homes aggressively to compete with both short sales and foreclosures.
With the announcement that the first time home buyer tax credit is increasing to $8000 (and this won't be treated as a loan that will have to be repaid), people are taking notice.
We certainly hope this stimulus will help first time buyers find a home that a few years ago was beyond their reach.
Let me know if you want more information
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585