Short sale are not what you may think !!!!!
For a investor they are good if there is no need to have a place to live. For the normal person that needs to have a home to live they can be a nightmare. The problem is that it can stretch out for months at a time. Right now I am working on a short sale that has lasted for over 4 months with no answer from the asset manager.
There are may home out there and building that can be bought at a great discount right now by just being very aggressive to the home owner. For example I just closed on a townhouse in Danbury that started at $320,000 and at the end of the day my clients bought the house for $289,900 with 3% back at closing. That is a net number of $281,203 was the real number of the sale. That is $38,797 off the asking price and that is better then you will get from a short sale.
My point is in this market pick a price and make sure it is a real price and go after it. If you are willing to walk away at anytime then you will be in complete control and you will find that great deal. Just make sure you tell your agent your investment goals.