Listed SS - questions

[George P.]

Don't have any experience with mls-listed short sales, or any short sales for that matter.
Found an owner-occupied condo SS that is listed for almost 4 months (as of today). Initially listed for 135k, now at 89.9k. For a rental, the property would need some updates, I figured no more than 5k (clean the carpet if doesn't need replacing, paint throughout the house, paint the kitchen cabinets (hideous diarrhea-green color). To retail, it'd require more (outdated kitchen, old appliances, paint).
I intend to buy and hold (can rent for 1200/mo.)
If the property was updated, it'd retail for around 90-95k. On its best day in today's market.

Mls remarks say (among other things):
*1) "Approval in hand!!", - does it mean the bank will likely sell for 89.9 without mich hesitation and will drag feet if received a lower offer?

*2) "Pending release." - is that something to worry about from the buyer's perspective? Is the seller's agent obligated to disclose the contract price and reasons for not coming through?

*3) Cash or hard money only. - (The property is not a wreck). I do not want to purchase with cash. I'd rather do conventional with 25% down (have a pre-approval in hand). I guess you don't know unless you ask, but does it mean the bank won't consider any non-cash offers?

*4) How likely are the banks to counter in such instances? If I want to pay no more than 75k, should I offer 70k and have some room to negotiate, or rather lay the cards down and offer 75k ?