Sometimes. Often times people hear the term "short sale" and automatically think of a seller that is insolvent and needs to sell their house quickly to prevent further financial problems. This is sometimes the case and can be an opportunity for a buyer to take advantage of another's misfortune. Alternatively, a lender may consider a short sale even if the seller isn't delinquent with their payments, but property values have declined. In these cases the "bargain" price may in fact be consistent with current market values, not below.
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