Options pursuing FHA note foreclosure

[Bob Jaeger]

Looking for strategies and creativity ideas on how to pursue an opportunity I found in my area that at the right price could be a good addition to my BRRRRRRR portfolio. The facts and challenges are-

1) The house is listed for sale on the MLS and it's "short sale listing approved by bank" leaves no deal.

2) The first lien holder, which is a FHA loan, is for foreclosing and the sale date is set for about 3 months from now.

3) The owner died and his estranged daughter now has the right to sell.

4) The estranged daughter has zero motivation to engage in the process.

5) The lender is owed about what the houses ARV might be after $75k in renovations and carrying costs.

6) I've been able to connect with the attorney handling the foreclosure in the interest of pursing buying the note who reports that since it is FHA they are unable to accept a short payoff.

This is where I'm looking for ideas or advise. Ultimately I'm trying to get in a position to control the property prior to foreclosure in the hopes of not having to compete for it at the foreclosure sale where I believe it wont sell and end up going back to the FHA although I have no idea what the opening price might be. It would seem that the foreclosing lender isn't that motivated because their losses are covered by the FHA.

The only thing I can think of is trying to offer the daughter cash for keys for a quit claim deed if I’m using those terms correctly. If I am the deed holder do I have any options?

I realize that the lender can still foreclose but might I have a better position to negotiate from with the lender or possibly FHA?

Thanks in advance for your input!