As a realtor in Seattle I am constantly being educated about the Short Sale process. It is easy to forget that the basic buyer doesn't know that much about it (or sometimes the seller (or unfortunately sometimes the listing broker)).
So here it is.
A short sale is when the buyer is trying to sell the house for less than the debt.
The Seller is NOT the bank.
The bank however gets to approve or disapprove the deal -they get to decide how much they will discount the loan (or if they will) .
This approval or disapproval usually takes several MONTHS.
The Seller also has to be approved in that they have to show hardship to the bank....the bank has to approve of the discount as well as beleive that the seller is having a hardship. IT IS NOT ENOUGH THAT THE PROPERTY IS WORTH LESS THAN THE LOAN..the Seller has to show hardship..you can't short sale your house and keep your boat. Amazingly, very few people seem to be conscious of this.
The Seller is REQUIRED to continue marketing the property after the contract is signed...because it is subject to the banks approval they can do that.
So there it is...you need time and flexibility. I think I read recently that short sales in King County Wa average around 95% of market. So don't expect you can steal a property just because its a shortsale. In my opinion the only valid reason for a buyer to deal with the process is if you really want that specific house...you probably won't get a steal.
Lastly - The above is my understanding and opinion...Do not rely on the above information, hire your own expert.
Dan Sanchez
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