Want to buy during the short sale for amount owed

[Shelley Schlatmann]

Can you sell your house for total debt owed in the middle of short sale proceeding?

I am interested in a home, found out its going through foreclosure as of 10/15, I checked with the county and $171k is owned to lender. House needs work but Comps for rehabbed homes are around $300k. I check with agent if we could buy for what is owed to lender and they told me that it's going through short sale. 

So once short sale proceeding happen you cant sell ? I don't understand makes more sense to sell for what is owed rather than short and have a deficiency judgement against you

This place was sent NED in Oct and they do not have an approval letter from bank yet