Short sale question for property in foreclosure

[Ryan MacDonald]

I currently have a pre-foreclosure property under contract that is scheduled to go to auction in 2 weeks.  I know with the short timeframe, I need to focus on postponing the foreclosure or getting it removed completely first and foremost. However, I know that if I do get it postponed/stopped, I will need to get the bank agree to a short sale in order for the deal to work.  I have never done one so I am looking for guidance in doing so as well as convincing the bank to agree to it.  Not sure what a bank might realistically take on the property.  Overall, here is the breakdown of what I am seeing.

Principal balance: $195K

Payoff: approximately $305K with late fees and such

Taxes: all paid and up to date

Repairs: $120K

ARV: $400K

Ideally I want to get the bank down as low as possible in order to make this worth my time. Luckily, the family has already given up on the property so I am wanting to take a shot at this to help improve my knowledge in the process and short sales determine better ways to do this in the future should I ever come across this again. Any guidance in this realm would be greatly appreciated.