Seeking Guidance on Short Sale
I have a homeowner who was facing foreclosure and given a hardship by VA. He is still not able to keep up payments. There is no equity in the home and I offered him a lease purchase option but seems he may prefer to walk away and abandon property before taking that option. His finances are not in great shape so I think he is in a bit of denial that he can leave with some money in his pocket but he now owes more than he originally purchased his home for.
I have a few buyers who would hop on this home if the price was right and since it is VA, being military, I can consider assuming as well but then again, if numbers worked out. I am very fresh to short sales and wondering how that all works.
Original balance of his home was $211K
Balance now $227K
Repairs Needed $4000
Q#1: How do they determine amt they will shortsale for? Do I or the owner need to let them know a price being sought?
Q#2: What amt does the short sale need to come back at to make sense to purchase or offer to by buyer?
Q#3: This should have been Q#1 but how do I or Owner start short sale process or do I need to enlist an agent to do that process?
Thanks for all guidance and for keeping in mind this is new to me.