Before you make an offer on any short sale or bank owned foreclosure, you must have proof of cash funds and a pre-qualification letter for any loan you might need to obtain.    Don’t be offended.  Banks are requiring this information of everyone now.   They don’t want to waste their time.  They won’t even entertain an offer without this evidence.  So be ready.  Do it in advance.  You may even have to get a pre-qual letter from the bank that owns the loan even if you have no intention of using them.  They just want to be sure you qualify.  Just do it.  It is worth it to get a great deal.