Wholesale A ShortSale Property

[Shawn Taylor]

1. Can you wholesale a shortsale property?
2. Can the owner sell her ownership to me for a contract to sell to an investor?

I know shortsale transactions can take a couple of months, but I have heard that they can be very lucrative once the bank and all the paperwork is completed.

I have a motivated seller who wants to sell her vacant house, this house has been vacant for over 3 years, she wants to sell her ownership to the house to me.

My exit strategy is to sell the contract to an investor, the house is upside down, she owes a lot on the house, I figure the bank wants to sell the house quickly to avoid a foreclosure.

What is the best way to approach this to get this under contract, legally?

This house is a 4 bed; 2 bath; 2,211 sqft; it was built in 1952. She lives in another state, I have had many dialogues with her to get the numbers on the property:

1st mortgage: $523K - Adj rate - about $2600 monthly payment

2nd mortgage: $45K - Adj rate - about $204/mo.

The bank told her they just want to get the house off their books, but they have not said what they are asking for the house, the bank did a recent appraisal (12/2013) of $250K which I think is very conservative, the 2012 taxes were $6,219.

I did a rough comparative market analysis which came out to $325K, a good ARV would be $330K on the low end and $425K on the high end. A repair value I estimate around $45-50K