If you are selling I can offer advice, but if a bank won't work with the homeowner and your already upside down on the home, it might be hard to get them to work with a broker. There are specific things they want to see happen in order to accept a short sale and you need to package your short sale proposal togather, much like a business plan. Even then, some studies have shown up to 90% of short sales do not work out. When buying a short sale, the same reasons apply. Essentially, everyone takes a loss on a short sale. If there is a second mortgage, they usually loose the most and have no incentive to help. Eventually the property is forclosed and marketable title is gained and it goes up for sale. Volumes have been written on short sales. My experience in the Indy market has been that until it is forclosed, price does not drop that much, and it is difficult to get all parties in agreement to facilitate the short sale.