I just finished a short-sale course that was very impressive, Certified Short-Sale Professional Course from RealtyU. I have been in real estate many many years and was floored by some of the myths I had about short-sales.
Myth #1 - Your Total Liabilities must be more than your Total Debt - essentially bankrupt. WRONG ... A short-sale deals with cash-flow and the bank will make you prove that your INCOME is less than your EXPENSES. The bank is not checking to see how much savings you have or your 401(k) balance.
The term that the bank uses is INSOLVENT - as an accountant I can see how this would make one think assets and liabilities - a better term to use is ILLIQUID.
The course from RealtyU is very enlightening and a great value too. www.RealtyU.com