Is a short sale even possible on this property?

[Natalie C.]

Hey everyone! Still a newbie and would love some input. I might be totally off base for even exploring this option, so would love some input.

Looking at a SFH in my township in New Jersey. Property was last sold in 2001 for $161k. Currently assessed value is $240k. Has been in pre-foreclosure for 1.5 yr. Looks like the amount owed on the property is over $700k. How is this a thing? Did the owners take out a second lien on the property? Is it even possible to pursue a short sale on this property or am I grasping at straws?

Not sure if it is owner occupied - I've seen an out of state license plate parked in the driveway and the mailing address is a PO box in a nearby town.

Thanks everyone!

Natalie