Welcome to the world of "short sales". The rules and regs change with the subject property, the bank, the seller, and on and on...BUT, there are some great deals. I would suggest allowing your buyers agent to do the footwork for you and the research. Is it an approved Short Sale? is a great question. If you are only Pre-qualified or pre-approved for a "certain" dollar amount, then the pre-approval letter should speak for itself. Example: If the list price is 100K and you are pre-approved for 95K, then the letter is stating all you can go for is 95K. Then it is up to the seller and the bank to say will they entertain that or not.
There is no right or wrong answer, just what will make you the buyer feel good in your offer, for you and yoru family budget.
Thank you for taking the time to read this. If I may be of assistance, please contact me..
Lynel Adams/Sr. Mortgage Consultant
Community Capital Bank