I'm also wondering why it may not have been put on yet... is it possible HUD is holding onto it until property values rise enough to recoup their loss?

In reality banks have been getting wise to the whole "short sale" transactions and it is too much of a loss for them. 

Its not a huge loss but still a loss so any advice as to how I can correct this issue is appreciated.

I would invest in private equity RE investment firms who put their funds up in a first loss position.  

Under each, you can set up LLC's to hold property, whereby the income/losses flow up through the partnership and into your hands as personal.  

I understand there will be mortgage insurance attached to my payments which is no problem.The way I see it is:$129k for the property -After 10% down and interest and insurance I'm estimating a payment of $380/monthplus HOA fees im looking at an expense of about $885 a month $1300 income - $885 expense = $415 cash flow before deductions.Does this seam feasible?  

Don't have much to share quite yet :)@Jenkins RamonMeat and Potatoes Below:Price: $140k Rent: $1,560/moWater: $60/moPrinciple and Interest: $525/moInsurance: $80/moTaxes: $320/moCashflow: $575/mo (those numbers are a little inflated since I made the purchase decision on more conservative numbers of including 8% vacancy loss ($125/mo) and additional cleaning and maintenance costs of $100/mo so when I ran final conservative numbers I was at $350/mo. 

Thanks everyone for the interest/advice.He gave me access to his profit & loss numbers for these buildings and everything seems to cash flow well.

That's obviously better than the loss at 10%, but those are numbers you will have to come up with. 

This is my goal here otherwise yet I feel like a novice on learning about the land values, feasible properties selection criteria and how to place a good listing and a house for selling.