So, your seller will most likely encounter legal difficulties should he try to negotiate his continued occupancy of the house after the short sale.I would recommend contacting the bank directly if you feel your offer is not going to be presented.

My first "encounter" with real estate investing was around 2004 when I read "Rich Dad Poor Dad", but I was living in the middle of nowhere at the time and then family obligations put things on hold for me. 

Well noted, and I will further my due diligence on this one (and others I encounter).  

Would like the forum to chime in on a situation i haven’t encountered.

I'm sure everyone would appreciate it if you would be specific on exactly who you purchased the home from & who you are encountering issues with for transparency.

Secondly, when you get licensed you learn how to do business the legal way, and by my constant encounters with some of the wholesalers/investors doing business these days, its clear they never learned what the actual laws are.

We already encountered 1 issue and it's only been under contract less than 24 hours lol.

I usually encounter messed up contract-for-deed agreements though.  

Michael -Make sure your realtor words your offer in a way that your earnest money is 100% refundable if you encounter problems during the inspection.

The only reason I want to develop a relationship with an agent is to request further information when I do encounter a property I like.