Sandi, If you're the borrower who NEEDS the "Short-Sale" then what Alan said below is excellent advice. The only thing I could add is if you have a huge amount between the agreed upon "Sales" price the lender approves and what is owed, the lender may come back to you at the close and blindside you with an unsecured Promisory note for a sum they feel makes them whole on the deal. We have had numerous lenders state in a very generic letter the offer was acceptable to them but when the Seller gets to closing there is a note for $50,000 owed by YOU to the lender who is doing the short-sale. The note obviously cannot be secured on the subject property so you either take it or go to sale!! Very hard to pin them down on this--you wont' know until the fat escrow lady sings!! My web site below goes into more detail about "short-sales" Good luck--keep talking to your lender!!