there are not much different weather it is short pay sale or not

uausally, as least the way i know, when the seller wants to sell, and the house is worth less than what the fair market price, they have to summit a short pay application to the bank, and the bank has to approve the short sale price, when the bank approve it, means the bank relinquishing their right to pursue farther, but you want to make sure all the lender the seller owe approve the short sale, taxes are handled on escrow, after closing, you should receive a clear title. you can consult with a attorney on more detail.
make sure the seller is APPROVE BY ALL THE LENDERS to do the short sell. the bank may go after the seller for the lost, but not you.