I personnaly have had a short sale experience from the buyers side. My wife and I submitted an offer on a Cape Coral Gulf access home that was in a great location. We were excited and mentally began thinking about living there. Through conversations with the listing agent we learned that the seller was ok with our offer and now it was time for the bank to respond. The bank gave a verbal response which was greater than the MLS amount! After further discussions, through the agent, the bank gave the lowest number they would take. We increased our offer by $20,000! Weeks went by with no response. The listing status was never changed and remained active. After two months another offer came in $10,000 over ours! We cancelled the contract and moved on.
I recommend when working with a short sale, make sure that there is an agreement between the seller and the bank on the sale value. Make sure the listing agent has a contact person with the bank. Beware of property with multiple mortgages against them.
As for the MLS rules, we could use be some checks and balances to assure that this listing can actually be acquired by a buyer and not put in a short sale category just to create interest.
