What is a Short Sale?
Business Week had an article that was helpful http://www.businessweek.com/the_thread/hotproperty/archives/2007/03/the_new_exit_st.html
The Los Angeles Times also had a good article http://articles.latimes.com/2008/jun/15/realestate/re-shortsale15
Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.
The transaction is handled somewhat like a regular transaction, except there is quite a bit of paperwork involved and the importance of knowing the short sale system within the market is essential for any realtor. The buyer should expect more paperwork and have much more flexibility in timing.
For more information on short sales, call me. I will be happy to answer any questions.
