I was just sent this link, Is the FDIC Killing Short Sales , by a fellow realtor suggesting that the pursuit of short sales is a hopeless cause based on guarantees being provided to most of the large banks by the FDIC? According this source the FDIC is guaranteeing 80-95% of the original loan value to the banks on foreclosure.

This has all the look and feel of an urban legend. But it's making the rounds and I'd just as soon put a stop to it with a dose of facts.

If I'm misunderstanding this, or if you have some facts please share before I spend hours digging in to it to discredit it.

Lee