Houston Property in Short Sale Process

[John Vo]

So I just saw a property being listed for short sale in my neighborhood and just wanted to get some advice on how the process work as well as the chances of this short sale going through. I'll give you the info that I was able to dig out:

1) Property is being listed for $299,000

2) Owner owed $370,000 to the bank

3) I valued the property as $375,000

4) The property was listed on the MLS for 174 days, and price was dropped to $299,000 recently from $399,000.

5) The Houston market in general is pretty healthy, it's currently in 4-5 month of inventory so it's neither a seller nor a buyer's market. 

With that said, my main concern and skepticism even before putting in an offer is that there's no way the bank will accept the price of $299,000 when the owner owed $370,000 in a generally healthy market. So is this a deal or is this a bust?