Short Sale Info
Buying first house, will live in it. Have an agreement of sale for balance of mort. plus back taxes, submitted this to my mort. comp.,I also have contacted her mort. comp. for a short sale. They are sending someone out to appraise house.
If I get a lower payoff on the mortgage, my lender said we can add an addendum to my loan for a lower amount. I plan on buying property regardless. House just went to loss mitigation department and she owes almost 3 years in back taxes. I have the homeowner in my pocket. Anyone see any problems or a better way. 
your good to go!!
Also, since you're going to buy the house no matter what, make sure that doesn't stop you from trying to go all the way with the short sale. Short sales can be sucky, but worth the work.