I am looking at a short sale deal on the MLS. To my understanding a "short sale" is a situation where the selling price is lower than the mortgage owed on the property and when sold, the money goes to the lender.

If I spoke to the seller directly and offered to bring mortgage up to date and assume the rest of the mortgage loan, could that work? Does the seller walk away with nothing but save themselves from foreclosure? I am not familiar with short sales at all besides the info I found online. I am familiar with the area and know what I could receive in rent for the property.

The property is distressed and needs a rehab, my thoughts on the deal are:

1) Assume the mortgage

2) Rehab

3) Rent

4) Refinance

Would appreciate any recommendations or thoughts from experienced investors, the area has a high demand but low inventory outside of NYC so I am confident on getting it rented within a week or two after rehab.