Some Insight Into Short Sales 
IF a home is being sold for below what the current seller owes on the
property and the seller does not have other funds to make up the
difference at closing the sale is considered a short sale.

 A short sale is different from a foreclosure, which is when the seller's
 lender has taken title of the home and is selling it directly. Homeowners
often try to accomplish a short sale in order to avoid foreclosure. But a
short sale holds many potential pitfalls for buyers. Know the risks before you
 pursue a short-sale purchase. You're a good candidate for a short-sale
purchase if:You're very patient. Even after you come to agreement with
 the seller to buy a short-sale property, the seller’s lender (or lenders, if there
 is more than one mortgage) has to approve sale before you can close.
 When there is only one mortgage, short-sale experts say lender approval
typically takes about two months.  Your financing is in order.
Lenders like cash offers.  If you're preapproved, have a large
down payment,  and can close at any time, your offer will be viewed more
favorably than that of a buyer whose financing is less secure. Lenders like
 no-contingency offers and flexible closing terms.