sometime the problem arises when the listing agent doesn't know the process or stay in contact with the right department.
Most lenders servicers now have a straight forward approach to the process.
I have seen sellers list their home as a short sale with no intention of ever selling they use it as a tool to negotiate with the lender. When I'm taking my buyer thru and the home owner mistakingly tells me they are putting in an offer as well... I know there is no chance for my. Buyer.