Sure you can. That home would just have to meet the minimum FHA requirements.
A short sale is a sale where the owner owes more on the home than it is worth. They attempt to sell it at current market value and once they have a contract they go to their mortgage holder(s) and ask that they accept the market value to pay off their debt in full. So the bank pay off is "short". Depending on how many lenders are involved this review process with the mortgage holders can take 45 days to 9 months plus. And at the end of the review process the answer from the bank could be a counter-offer, an approval or they could decline the short sale.
You want to make sure that both your agent and the seller's agent are knowledgable on short sales and preferrably that that have involved a legal firm to handle the negotiations.... more