New to short sale deals

[Arthur Barnes]

I've got a deal that has falling in my lap. I am not new to real estate but I haven't done a short sale deal like this.

I have a house that seems to be worth $80 to $85K, the person that brought this to me has worked a short with the bank for $40K. I have someone that likes the house and is approved with an FHA loan.

I am not sure how to proceed from here. Is it best to use transactional money to take it down and sell to the end buyer? What might I run into?

Thanks in advance.