I don't know about you but as short sales become more prevelant I find myself being asked questions I can't answer. As a Realtor I needed to know more about short sales and I came across this excellent article from one of the blogs I frequent - By Elizabeth Weintraub, on About.com. It spells out how financial organizations see a short sale and gives some really good advice when you end up working with one of these homes. Even after reading this article tread very carefully, this could be a potential mine field legally. We are not seeing a huge amount of these but the number of foreclosures is rising slowly.
Elizabeth's article http://homebuying.about.com/b/2008/06/02/will-a-short-sale-ruin-my-credit.htm