Short sales are properties for sale on the market that the seller owes more to the lender than the propoerty is valued for at the current market value. The seller loan is referred to as upsidedown. The property has a 2 part negotiation involved on an offer.
(1) The seller aaccepts the sale.
(2) The lender accepts the sale.
Otherwise on offer the sale is similar to a traditional sale except longer 60 to 90 days or even more. The more lenders the more step(2) partners involved to accept the sales price & terms.
Lika a tradional sale the seller can accept, reject or renegotiate the offer. Then the process is repeated by each lender tharough a short sales negotiator assigned by each lender. Besides the other steps on the buyers side of a traditional sales extra appraisals or breoker price opinions are on going to evaluate the market value of the property and negotiate the short fall with the sellers.
Will a buyer get a better buy with a short sale is dependent on the lenders acceptance of the terms & price on each transaction. As with every transaction the seller and the seller's lender(that owns more than 100% of the value of the property) must accept the final terms of the price & negotiations for the property to proceed and close with the buyer meeting all of the usual pre-approval process steps of a traditional sale.
Buyers should consult with both a realtor a competent attorney that is knowledgable working short sales transactions to protect there interests as every short sale may not be accepted at the original seller accepted offer price and terms.
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