The answer to your question is, Yes. The mortgage company has provided approval to the owner of the home to sell the home, as a short sale and they know that they may not recoup the actual amount due on the mortgage and they also understand that buyer's may come in at a price lower than what they are requesting.
Your best bet on any home is to know what other properties have sold in the area within the past 6 months. You will also need to know what type of major work needs to be done on the home before you make an offer. The banks have already done their homework and they know what the comparables are in the area, but you, as a buyer have the right to put in an offer for what you feel is true market value.
Also, make sure that you have a mortgage pre-approval in hand, before proceeding with any of these foreclosed or short sale properties.
If you need further assistance, please feel free to contact me at 781-974-9189.
All the best to you!
Cawley Realty Group
399 Washington Street
Braintree, MA 02184