Negative Equity... Creative Options here?

[Shannon K.]

Sent out my first ever letters to pre-foreclosures on Tuesday. I’ve received a call back already today. (I’m purchasing homes for flips, not wholesaling, but open to that option if its there). Bank will not work with them any longer. Is there any creative help for this situation?

Owes: $190k

Estimated market value in current condition: $150k

Needs: $40k rehab (overestimated)

ARV: $200-220k

Essentially negative equity here… My natural first thought is to submit a short-sale package with the owner and have them send their lender a signed contract with my proposed offer. However, the absolute max we can pay is around $120k to make this a sensible flip.

Are there any other options here? What are the odds a bank will consider my low offer? I’m searching around for options on BP for what to do with basically a negative equity situation…