@Mike Larry What state are you in? It will make some difference as to whether you will be dealing with an escrow company, title company or law office for your closing.
You are attempting a short-sale on a pre-foreclosure property, correct? This is one of the more timely transactions. Short sales can take up to 3+ months to finalize. It is no easy task to complete. I would love to help you out but I need just a little more info.
Are you doing this off market or with a broker?
When is the foreclosure sale set for?
Have you and the seller agreed on a price? The seller may be on the hook for whatever the difference between what is owed and the price you agree upon. That is up to the bank if it will go after the seller for the difference.
Are you a cash buyer?
@Mike Larry That makes things much cleaner. I thought you were looking for advice on foreclosure or short sale. Just come up with an agreed price and since you are in New York you will close using a law firm. Depending on the length of time you can look into an FHA loan since you will be living there (I do not know the time you have to hold the property for). I would try to avoid the HML if you can because of the interest rate. If you have any W-2 income you will be able to get a better rate elsewhere.