What Do I Do Next???

[Pat Healey]

Will try to make this as short as possible.  I received a call from a motivated seller and here is the scenario he described.  He got a divorce and filed bankruptcy two years ago.  The property was a rental at the time of bankruptcy and since it was rented the seller continued to make the mortgage payments.  About four months ago the renters left in the middle of the night so he stopped making payments.  Someone also told him that since he filed bankruptcy he should just let the house go.  He has been getting correspondence from the bank encouraging him to get the payments caught up, and, they have also told him they would agree to a short sale.  We are in Texas, which is horrible for short sales ( a lot of realtors won't even handle them).  He is going to call the bank on Tuesday to find out how much equity he has but he definitely does not want to come out of pocket.

This would potentially be my first property (yes, total newbie) and this sounds very messy.  My guess is it won't go anywhere, but would like to use this as a learning opportunity.

What options do I have available (i.e. does it have to be a short sale)?  What should I attempt to do next?  I have asked him to provide me with a contact person from the bank and the equity amount when he gets it. 

Whew!  What a mess!