Patience is key with how critical it is with the whole short sale negotiations. I have a few clients, that are heated cause their offers dont get accepted. Its 98-2001 all over again when future buyers are starting to overbid on properties. Good for surrounding homeowners cause the value is coming back up but putting 30k over the initial asking price. Stanislaus & San Joquin County is the most corrupt and unethical counties Ive had experience. I just dont like how they do business out there. They'll set a variable price on properties, a low asking price - to a high asking price, and if your offer is towards the low end of the purchase price they dont even look at your offer....
The best of luck tho man, right now is definitely the right time to buy....
PS To those that are looking for buying a piece a property in SF. IM listing a great opportunity for well below the asking price in the 26TH AND HARRISON area!!!!