Hi, A short sale takes place when the homeowner owes the bank more then the home is worth or going to sell for. This process is subject to bank approval and can be a very lengthy process. Most of the work is on the sellers side, they need to first prove a hardship to the bank. The banks are specific about what a hardship can and cannot be. Once that is done the bank will review all of their finances, etc and determine if it will be easier to short sale rather then eventually foreclose. Keep in mind a short sale is typically a pre-foreclosure measure.
As a buyer, you don't normally know if the bank has accepted the offer you made to the seller until there is a fully executed contract and full workout package submitted. if you proceed with a short sale doe yourself a favor and continue looking at homes and also have low expectations.
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