Possible Short Sale? Confused :-/

Any help would greatly be appreciated! :) This is what I have: Owner is in foreclosure Stopped paying back in December ARV $400K Payoff Statement $345 House as-is is worth about what the payoff is There is not enough fat for me to buy it outright (after realtor fees, repair costs, etc.) The house is in a great location but needs 2 bathrooms gutted, cabinets in the kitchen, painting all throughout, carpet in the basement and possibly a garage (all houses in this area have a garage and this one doesn't). it might hinder a sale. Owner just wants to walk away. Is this a good shortsale opportunity? I never did a shortsale before so I have no clue. Any help would be greatly appreciated! Thanks. :)