Hi BP community,

I've been working with an heir to a house in Jacksonville FL (32225). I included a picture below for those who are curious.

She inherited it, it has a reverse mortgage that has the following characteristics:

• outstanding balance: ~$199k
• appraisal: $175k
• foreclosure extensions have already passed and the door is open for the company to file the first set of docs with the county when they want.

Being that it's an inherited property/mortgage, it's a non-recourse and therefore she doesn't see the use in marketing the property for sale, spending all that time(, lockbox, etc hassle) when she will not benefit from it in any way. We both think in its present state, the property could fetch approx $180-185k. From what we understand, since $185k is short of the amount outstanding, that would constitute a short sale and all proceeds would go to the bank.

I am wondering: is there an opportunity here?

• Appraisal is $175k
• Bank will accept $166,250 (95% of appraised value)
• Bank allows for 6% sales commissions

Although there might, at best, be a small opportunity and a small profit would not justify the time spent, I would place value on learning through this situation. Therefore a small financial gain + learning is worth any extra effort in calling people who can help, conversing through BP, more due diligence, more legwork etc.

I'm looking for advice from those who have experience with RM short sales on: possible ways forward, people to call to learn more, things to check up on, ... any advice, thoughts, or questions.

Some ideas I had so far:

• Find an investor who will buy it for approx $170k. Seller wants some $ for her time. I want to recoup some $ for my time and $ invested so far. Very unlikely to happen given thin margins.
• Find realtors who will represent both sides. This will release $9,975. Pay the agents for their time (thinking $1000 total) DISCLAIMER: I have never bought any property through agents. I always go direct to sellers and therefore I hope you can forgive my ignorance here if this is illegal or against certain rules (all agents might be laughing right now). Property now bought for ~$157k (I will disburse funds to the seller separately from this purchase). 
• Let the deal die. Tell the owner that they would be best to let it foreclose. She was ok with this from the start. Least exciting option for me because I don't find a way to proceed in these situations and the owner didn't gain much.