I have contacted five and they all refuse to do it and say it is forbdden.
It may be illegal in AZ, I don’t know. Having lost my house this year, I can tell you that the bank will tie any short sale up in endless paper if they think they make more money by buying it at the auction and reselling it. Get ready emotionally to move, and secure a lease before the foreclosure. My best wishes to you and your family.
Unless there’s some weird law in your state, a short sale is valid at any time. The problem is that most banks take the risk that it will bring more money at auction, and it’s their call. My two cents is that whatever dollar amount your parents are willing to pay, let them buy another property in your area, avoids having them have to bid at auction and may get more bang for the buck.