The information you received is correct. However - this unit may or may not sell as a short sale, it all depends on the bank. So, if you're buying with cash anyway, and would like to submit a back-up offer, let me know. Many short sale buyers walk away while waiting for the bank, or banks, to approve their offer. Short sales can take a long time to close - if they close. So, it can't hurt to submit an offer if you'd like a chance at the property.
That being said, if this unit doesn't sell, and it ends up foreclosing, you may see it back on the MLS down the road. In the meantime, something else in the complex may come up on the market.
There are other condos at this price point, too. Are you looking in any other areas?