Short Sale in TN

[Christopher Malden]

I would like BP's advice and another set of eyes to look at my deal. I'm considering putting an offer in on a short sale in TN and need help determining the offer.

The house in question has been on the market since May '13. It's listing price is 949K. I inspected the property in October and found that the roof leaked and there was mold in the corners of the ceiling of several rooms. My contractor estimated the repair costs to be approx. 40K. Recently, I found out the owner filed bankruptcy, Chapter 7, back in June and the house can be sold with bank approval since he is underwater. In June, he owed 850K and I'm sure its increased since then. The county appraisal was 903K. I have consulted with my attorney and he advised to proceed with caution.

I considered submitting an offer of 829K but am concerned that I would be overpaying and need some guidance.

Thanks BP community.