Can I profit off of a short sale here?

[Account Closed]

Hi everyone,

I've come across a lead and I'm wondering what my options are here. To me it seems like they are limited, but wanted to hear other perspectives on how I can make this a deal.

Info:

-3 bed/3 bath, 2000+ sq foot condo

-Owner occupied, bought in 2012

-Good condition, not much repair, if any at all

-No liens

-Seller owes around 217k on around a 255k mortgage

-Owes 1.7k in taxes and is back around 10k on his mortgage. 

-Seller was served about 2 weeks ago with foreclosure paperwork. 

-Seller has a VA loan.

-The area has appreciated, it looks as if the seller could get between 260 to as high as 295k. To narrow the price, I would say the comps indicate a price in the 265-275k range

What do my options look like? 

Since the place has appreciated, I feel that I don't have much leverage with the bank to negotiate a short sale. Before the property officially forecloses, could I search for a retail buyer for the property? For example, we go under contract and we assign to a retail buyer? Would I be better off to pass this to a realtor and collect a referral fee? 

Any feedback would be greatly appreciated..thanks!

[Wayne Brooks]

Pass it to an agent, you collecting a referral is “iffy”, he can’t pay you a fee based on it closing. 

There is no short sale here. Wholesaling to a retail buyer is difficult.....title is not in your name, if allowed they would have to pay an assignment fee outside of closing. 

If you try to wholesale it, you will likely just tie up the property long enough, without closing, to send him to the foreclosure auction.