money required in a short sale?

You will not be able to obtain a mortgage that low, you will need to pay for this with cash.

Buying a short sale property is no different than buying any other, when it comes to money and financing required. You will need to have all of the purchase price money available when closing. If the agreed price is $40,000, then you need that amount to purchase the house, whether it comes from a mortgage, your savings, or a combination of both.

Well are you buying for cash or getting a mortgage?

Mortgages require a down payment of at least 3.5-5% plus closing cost cash.

Short sales are no different than other sales in what is required of buyer. They are different in that they take longer and have many bumps in the road and detours and sometimes don't close.

You can make an offer at ant time before the pending deal closes, and the listing agent is required by law to present it to the client. Any real estate deal can fall out before the transaction has gone to settlement, so the listing agent would be wise to at least present your offer to the sellers. The flip side of that is this. If you make an offer your earnest money is commited until 1) your offer expires, or 2) the deed changes hands.

Depends on your financing and qualifications. See a lender for answers, not yahooians! Some will only solicit your business for loans.