Defining Short Sale -- And -- A Talk With My Realtor

I had a talk with my realtor this morning and told her in a very polite but direct manner than I wanted to be kept more closely informed on the proceedings. She was very nice and forwarded me a three or four emails; part of a conversations she's having with the seller's realtor. I learned a few things--the seller is planning to haul away the dozen old windows in the basement, and also the large appliances tucked next to the garage. That's a relief, as I had already planned on doing that on Day 1. More importantly--the bank has given the OK on my offer, and it just needs to be signed by the seller. Again, this is a short sale, so the bank is the party that matters most (from everything I've read), as they're going to eat the loss. Here's a helpful Wikipedia description of short sale:

"A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale."

A short sale comes right before a foreclosure (in fact, this seller will foreclose in six days if they don't except my offer). You have to be on your way to foreclosure, generally, to qualify for a short sale. I have a feeling the rules are changing daily with these deals, and wouldn't be surprised if the banks were leaning more heavily on the original owner to pay back some of the debt, and not just absolve it completely. I'm pulling that from my magic hat, however, and I don't know if that's true. In practical terms, what this all means to me is that I'm simply waiting for the seller to sign a piece of paper, and then the deal will essentially be sealed. I honestly think the selling party is dragging their feet in the hopes a better offer will come through.

I have to say, I know the financial weather is horrible right now, but this is a very exciting time to be getting into the market. I guess I just like storms.