Sometimes. Most people hear the words "short sale" and instinctively think of a seller that is insolvent and needing to sell their house promptly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to do well from another's misfortune. More commonly, a lender may consider a short sale even if the seller is current, but property values have declined. In these cases the "bargain" price may in fact be consistent with true market values rather than below.
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