[grendiers]

Well, you've probably read something like this by now:

short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.[1] It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.[2]

We bought a property in new mexico under a similar condition. A short sale in pre-foreclosure. Made an offer on the property, got it, and had to pay cash. Some of these sales are cash only and not open to mortgage financing. The more 'problems' with the property or in this case, with back taxes, there's probably an increase in due-diligence on the part of the buyer. The seller is off the hook so to speak, doesn't lose much of his/her credit and I can't believe they allow this! Our seller was a hoarder, and overall pig! He received part of the commission in selling the house! We're happy though, have a house and 4 acres on a mountain in southern new mexico!