Florida Vacation Home Short Sale Questions

where is this market?
i have been looking in central fla at vacation homes and the mkt continues to drop
short sale example: house listed at 275k 6 months ago now offered at 205k
oddly enough, the vendor received an offer for 235k during the 275k list period (which he accepted) but the bank never responded! Now the list price is 205k.
is there any thing available to the banks from the bailout plan to subsidise the short fall between the principle amount currently outstanding an the accepted sale price?
in this case, i know the house originally sold in 06 for 475k and the mtg reg’d at that time was 428k!

Florida’s market is really down and foreclosure properties are everywhere w.palm b. ,kissimie,tampa,cape coral ,immocalee,leight,naples ;it’s skepticle for any lender to be very open in this market specially if they already have non-performing assets in their portfolio.I just work on a property in Naples bought for 450k 3 years ago ,bpo was145,900 ,client offer147K ,he got it ; do the math .

thanks for the comments