Newbie needs help analyzing a deal.....

[Janice Waggoner]

Hi,

Got a call from a lady who recently went through chapter 13 and surrendered her house to the bank a year ago. The bank has now come back to her and asked her to take it back. She has already moved on and doesn't want it but wants to see if she can sell it. The mortgage has $80,000 left on it, plus a year of payments in the rears. Her monthly payment is $500 (mortgage only). Taxes are up to date. Online the house looks in good shape, it's a 1956 house so I'm guessing at least $20,000 in updates and the ARV is $125,000. Rentals in the area are going for around $1100 month.

What would be the best solution for this one? Do I make an offer to the bank or her? Would this be a good subject to and then owner-finance? She's not looking for a profit, just want to walk away. Or should I contact the bank and try to do a short sale?