If you happen to be a bank participating in the HAFA program then effective June 1, 2012 on HAFA files the second lien holders can be paid $8,500 from the first instead of the old ($6,000). This should make short sales marginally easier with 2nds getting a slightly larger payoff.
After doing a little more snooping, we found out that for sellers doing a HAFA Short Sale creates a less negative effect on your credit score than foreclosure or conventional short sales. Plus the $3000 is relocation assistance can come in handy.
One thing to note on HAFA files, the seller may “NOT” stay in the property and rent it back from the current owners nor can they purchase it back in the future. As far as “traditional” short sales we are still looking into the “traditional” short sale if owners can take advantage of a rent/buyback possibility.