At What Point Will Lender Consider Short Sale?
I was wondering, at what point will a lender consider a short sale? I have my eyes on a home that was on the market over a year ago, pulled off, and has been vacant since. While researching preforeclosures in my area - viola! there it was! They owe 155,000 comps support 225,000 (if it had about 15K applied toward it) so.....Just after contacting owners, it was listed as a foreclosure by a real estate agent. Knowing it is a pre-foreclosure, and that the owners are on the clock, and that the house needs some updating, I offered 150K. Response was that the offer was less than what the owner owed on the property. When will lender consider short sale, and should I up my offer to cover what is owing? Having serious fun trying to make a deal happen! 
Dear Axis Investor,
Offer the unpaid bal of the mortgage. If you can I would prequalify and have a standby loan available.
Of course A plus is just to assume the existing mortgage and pay a simple transfer cost. Hold down the expenses.
Remember our Motto Kiss aka Keep It Simple Stupid.
Cheers Lucius
"I was wondering, at what point will a lender consider a short sale?"
A lender will consider a short sale only after the Seller agrees (via a Contract), an application for short sale consideration has been prepared and furnished to the mortgagee, and (if you want the short sale to be approved) a comprehensive, compelling Short Sale Proposal that should accompany the Seller's application.
There are many variables to the process. Read "Prequalify a short sale candidate" for an overview of what is necessary. It's on this site, but if you can't find it, PM me and I'll send it to you in a word format.