How Do I Negotiate on Behalf of Family Friends Willing to Lose Property via Short Sale?

[Tracey Lewis]

BP Community,

This is my first forum post here and I'm also a new investor. I just became aware of a situation where a family friend and her mother have offered to short sale their home with no regard to loss of their initial $20K down payment and damage on their credit due to the fact that they're up in age (one is over 100 years old) and they see no other recourse.

How can I advise them of a different strategy to resist the temptation to give away what is essentially a really nice home that needs minimal TLC in the Oviedo FL area? My goal is to become their advocate and also partner with them long term with regard to this house. It won't be as easy to help them as I thought even though I've known these women all of my life; this is due to my cousin (who's their daughter and is the one who got them in this pickle) not being so willing to approach resolution any other way than with a short sale. 

If I'm able to help after all, I plan to ask for a share in the home equity and proceeds of the sale in exchange for my advocacy work and help with property management. I'd like to recommend a lease option strategy with the tenant/buying prospect to sign an agreement to purchase the property in one to two years at the then prevailing home value price.

Is what I've shared a good beginning strategy? What all should I consider in order to avoid potential pitfalls for my lifelong friends and myself? Thanks for any advice!

[Bill Gulley]

Short sale? I'd say unless you are an attorney, a certified HUD credit counselor or a qualified Realtor, you don't advocate on their behalf. Being newish, (I'm guessing) the best way to help is to point them in the direction of the qualified advisors mentioned and not try to pull any deal with them, they are limited as to what the can receive and to any future interest, jail isn't a happy home. Sorry.... :)