[The Professor]

Frankly what you are saying doesn't really make a lot of sense. A foreclosure sale, where the loan amount exceeds the value of the property at the time of sale, is basically a "forced short sale" with the lender typically being the purchaser. The advantage of an arranged short sale to a third party is it gives the borrower the opportunity to "negotiate" a resolution with the lender as part of the transaction, with the possibility of elimination of any potential deficiency.

Daniel