Banks have little incentive to approve a short sale. If the loan was insured, by letting it go to foreclosure, they can recoup the insured amount. I don't know how your state regulations vary from Michigan. Here, once a Sheriff Sale occurs, the owner has a min imum of 6 months to redeem the property before the bank can start the process of selling it. If it was insured, it could take another several months to process before it ends up on the market again. It won't do you much good to try to get another offer to the bank. Once they have a home on the tracks, they keep moving forward. The sheer volume of foreclosures that the banks are dealing with make them non-responsive to the individual trying to purchase one house that isn't even for sale yet. I've tried it with some pretty good inside connections and never been successful. Unless you're willing to wait several more months, you should probably take a look and see if there are any current foreclosures for sale that might work for you. Good luck.