A short sale is when the Lender(s) will receive short of what they are owed when the property sells. A Seller, in financial distress, contacts their Lender's Loss Mitigation Department, answers questions, provides required proof of documentation asked of them, then hopefully gets short sale approval. The closer you offer to full price, which is usually listed under market value, the more chance you have of getting it approved by the Seller's Lender. A short sale can take one month to get approval after a ratified contract with the sellers, but is not unusual to take 3-5 months or more, with not response to your offer in the meant-time.... more
100% financing is still available thru the USDA Rural Development. The seller can pay all your closing costs allowing you to buy a home with no money down. USDA Home Loans are the best option out there. Go here for your answers.