Short sale : appraisal value vs remaining debt

[Tyheem Joiner]

Hello bigger pockets patrons, 

I am new to real estate development and looking to possibly make a cash offer on a short sale. I am trying to wrap my head around the whole short sales process.

I have heard some conflicting information regarding bank approval process. My understanding is that no matter what number a seller has price and approved for a property, the Lein holder (bank loan agent) will determine what they will accept based on BPO and other factors. Some have said sales price would be worth 10-20% on market value, other have said that discount would be for the debt owed.

My question / confusion is 

1. Would the bank accepted price be based on market value of house or debt remaining on house?

For example if the house market value is 400k, but 125k debt left in loan. 

Will they consider 100k price since it is a 20% discount on the debt owed, require 120k offer or higher, or require price of 320k (20% off market value)?

2. For properties where there may be uncooperative tenants, damage to property and therefore little to no access to house for bank appraisal by BPO, would the bank consider damage and potential issues removing tenants in lowering price.

Thank you in advance for any assistance you all are able to provide me.

[Brett Goldsmith]

Offer based  in relation to what you think the home is worth as-is. Bank will do a valuation of it's current condition and there value will be based theoretically somewhere around there. Could be higher and could be lower.