Short Sale - is it an Option for the Homeowner?

[William Strehse]

I have a friend who knew we were REIs and had a neighbor who lived in Drexel Hill who past away.  Her daughter is now deciding what to do with the house and came to us.  Unfortunately her mother had put a reverse mortgage on the house and owes $123K on house where the As Is value is probably in the $135 range.  Would anyone know if the Daughter would be able to go back to the bank and ask for a Short Sale and what the chances of getting a positive response would be - and if Yes what should an expected value be?  The mortgage was completely in the Mother's name so the daughter could just walk away and let it go into foreclosure but she said she does not want to go this route.  Suggestions?