From time to time, yes. Most people hear the words "short sale" and routinely think of a seller that is insolvent and needing to sell their house quickly to prevent further financial problems. This is occasionally the case and can be an opportunity for a buyer to cash in on another's misfortune. More commonly, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In these instances the reduced price may in fact be consistent with actual market values instead of below.
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