with the lender, provides recent data, brings forth a qualified buyer and offer, you can do very well.
Lenders want to recover the first mortgage loan, and may write off the second mortgage which
is often 10-20% of the original financing. A buyer must be prepared with financing, and open to eliminating contingencies or concessions. In my experience, major banks are eager to cooperate
with an informed agent who can evaluate, price, list properties that may in arrears, preferring a
sale than force a foreclosure. A buyer is likely to be able to purchase at 20% below market!
The concept of short sale is that the lender settles "short" ie settles for less than they are owed.
Buyers can get good value by purchasing short sales, however be prepared to be patient. Typically the process is slow.
If you are considering purchasing a short sale, you would be well advised to work with an agent with successful experience in short sales
Best of luck