SW Houston short sale lead

[Martin Zagrzejewski]

BP I need some advice.

I was approached by a homeowner who is in arrears on their mortgage by about 12k. Initially this was in response to a mailing for Sub2. I inquired what was owed on the property and the owner said it was about 99k total. The property is a 3/2 in a SW area of Houston about 1692 sq. ft. The owner stated they would like me to take over payments but the property is in bad shape and the ARV is around 120-122K so this doesn't work for Sub2.

I would estimate repairs at around 30k to get it to a decent shape.  They have some foundation damage and the pool is cracked.  House has not been updated since the 1970's.  I'm thinking property would meet the conditions of a short sale but since I've never attempted one I'm interested in hearing how other investors would proceed at this point.  Any advice?