Mortgage is about $213, The house listed @ $265. We can't seem to sell the house due to repairs and condition. I've tried lease option...doesn't work because of the condition...I've had an offer of 185K, which doesn't even cover the mortgage. Any ideas out there? She doesn't want to give it back to the bank...she's not behind in her payments...I've also considered auction...but there's not enough "wiggle" room...as you can see by the numbers..

What do I do now? Just let it foreclose?

See if the mortgage company is interested in a short sale.

Call the lender now! Ask the losss mitigation department for a short sale package. Make sure you explain to your client that any loss the lender takes will be reported as 1099 income to the seller. It will all be outlined in the package. The case will be assigned to a case manager, and that will be who you work with. It's not all that complicated, but you need to act sooner rather than later. Once you get a new lising price approved by the lender, call the party that made the offer and ask them if they are still interested.

If they want to keep the house, the lender may be able to offer other options as well.

Absoulutely the best I've heard yet...I really do appreciate this. I'll talk to the seller tonite.
Thanks!

i sent you a PM.