I have a listing now pre-foreclosure.House is worth 170k arv but needs major work.Loan amount is 91,000 after accrued interest,attorney,etc. the balance is a little over 99k.

Investor wants to offer short sale of 85k.Will bank do a short sale knowing at courthouse steps they would probably get the full amount of the loan because of the equity?

The default attorney says submit the offer and see what happens.My sellers want an extension in writing from the bank.If they don't get that they will file a ch.13 buying them a few months more time.(credit is beyond repair already)
Any help appreciated.

The bank will most likely rely on one or two broker price opinions to make a decision on a sale like this. If you know that even with the work needed that this is a lowball offer, i personally wouldn't waste my time. But then again i've seen some odd sales pushed through so if you have the time it's worth a shot.