For you, yes this is the right time to get a loan since interest rates are so low.
I think Ronnie Raincloud in the previous answer is trying to freak you out.
What you need to find out is this: 1. Does the owner have 1 or 2 loans? 2. If there are 2 loans what type of loan is it? A purchase money loan or an equity loan or line of credit & how much equity, if any was pulled out by the owner.
It is important to know how much in an equity loan the owner pulled out because YOU need to be aware that the 2nd lien holder will probably need as much as a 20% payout on the balance owed paid by you (normally short sellers are up a creek & can't afford this).
If you know these things & the possibilities of what may be asked of you,now, then after getting short sale approval, you won't be blindsided with "Surprise, we need another $10K from you in order to close the deal over & above your down payment!".
It is also possible that cash contributions are requested from the lien holder even if there is no equity loan, so be aware of that too. Buying a short sale is NOT the same as buying a standard equity sale OR an REO & it's important for buyer agents & listing agents to let buyers know of these possible cash contribution requirements up front.
The Preliminary Title report will tell you if there are 1 or 2 loans, but it likely won't tell you if that 2nd lien is or isn't an equity loan.
Shoot me an email directly if you want to talk about this further, I won't look back on this same Trulia posting for answers after mine.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 100% success rate