Buying a home for less than what’s owed

[Lauren Rose]

Hello,

I was looking to learn a little bit more about short sales. I am looking to buy my first home. One of my friends houses is going to be getting foreclosed on. The house was appraised at $350,000. She owes $190,000 on her mortgage and has a $100,000 home equity loan. 

Can you buy the house through a short sale for less than the debts that she has on the house? How would a short sale process work?