This is some information I received that might be useful to you.
"The Wide Window - While many lenders are more than happy to entertain short sale offers others suddenly become fickle. Offers accepted are suddenly reject or additional stipulations placed on the closing. Rarely are these in the buyers best interest so learning ropes substantially increases the likelihood of a successful closing without the risk of last minute delays, properties being placed up for auction at the last moment and other increasingly common tactics.
The Miserable Mill - One of the caveats required for a successful short sale is the agreement of lenders including 2nd mortgage holders. The further down the proverbial totem pole the lender is the more miserable they are likely to be at the prospect of a foreclosure.
The Slippery Slope - Sellers are signing purchase agreements with more than one buyer and then sending each to the mortgage holder for review in order to maximize their chances of receiving one valid contract. While this might initially appear like a good idea for sellers, it presents unique challenges to buyers.
The Grim Grotto - Properties are sold As Is but that doesn't meant the underwriters are willing to let everything go without a second look. Insurance is also likely to get in on the act as well as the local property appraiser. In fact, it might seem like everyone has a grim opinion about your plans with a corresponding hoop they expect you to jump in order to finalize it." --Chris Mclaughlin