Short Sale Pending Court Approval

I got a short sale lead, where the seller mentioned that the short is subject to court approval. I thought it meant that the seller has more than likely filed bankruptcy or is in probate. Any other possible reasons I should know of ahead of responding to the seller?

Thanks,

Ben

Ok, the seller is in chapter 13 bankruptcy. Here are more details:

(1) Court said that the property needs to sell by 1/31/09.
(2) Seller is the listing agent.
(3) Numbers:
1st mort $198K
2nd mort $135K
Repairs $5K
ARV - $340K

The seller mentioned that he is looking to walk away with $8K - $9K in commissions on the sale; I’ve never heard of this before. Is that legal?

Also, since I’d like to wholesale this one, is it worth my time to pursue this deal?

Ben

I am curious, what end up happening on this one?