Banks accept a FSBO vice listing agreement

Quick question relating to shortsales and listing agreements.

Will banks accept the seller attempting to sell the home FSBO in place of a listing agreement? How do they usually respond to that?

I am in a situation where the seller does not have the property listed yet and thinking maybe I should just let the bank know that she is trying her best to sell it on her own to avoid realtor fees. Im not sure how that will fly though. I am going to shortsale the property.

What do those more experienced know about this?

gregg, tucson